EMV Calculator

Calculate Expected Monetary Value (EMV) for risk analysis and informed decision making

✓ Risk Analysis ✓ Decision Trees ✓ Investment Planning

Expected Monetary Value Calculator

Scenarios

Scenario 1

Scenario 2

Scenario 3

Analysis Settings

About EMV

Expected Monetary Value calculates the average outcome when facing uncertainty

EMV Formula:

EMV = Σ (Probability × Outcome Value)

Risk Assessment

L
Low Risk
High probability of positive outcomes
M
Medium Risk
Balanced risk-reward profile
H
High Risk
Significant potential for losses

EMV Applications

Investment: Compare investment alternatives
Projects: Evaluate project risks and returns
Insurance: Determine optimal coverage levels
Business: Strategic decision making
Procurement: Supplier and contract evaluation
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How to Use

  1. Define each possible outcome scenario
  2. Enter the monetary value for each outcome
  3. Assign probability percentages (must total 100%)
  4. Add descriptions to identify each scenario
  5. Select analysis type and risk parameters
  6. Review EMV results and decision recommendations

Decision Guidelines

Positive EMV

Expected positive return - generally favorable decision.

Near-Zero EMV

Neutral outcome - consider other factors for decision.

Negative EMV

Expected loss - reconsider or mitigate risks.