Discounted Cash Flow Calculator (DCF)
Compute present value of future cash flows. Enter discount rate and cash flows by year. NPV of flows shown.
Use the Discounted Cash Flow Calculator (DCF)
Enter discount rate and cash flows by year (1-5). Present value of the flows is calculated.
DCF inputs
Discount rate and cash flows by year.
Results
Present value (NPV of flows)
$5,163
PV = sum of discounted cash flows.
How this calculator works
Enter discount rate and cash flows for years 1 to 5. PV = sum of each flow divided by (1 + r) to the power of the year.
How to interpret your results
PV is the value today of those future flows. Compare to cost to get NPV. Use for project or asset valuation.
Common mistakes to avoid
Using a rate that does not match the risk of the flows; mixing real and nominal; or forgetting to add or subtract initial investment.
FAQs
What is DCF?▾
DCF values future cash flows in today's terms by discounting them at a rate. PV = sum of CF_t / (1 + r)^t.
Which inputs matter most?▾
Discount rate and each year's cash flow. Higher rate lowers PV; later flows matter less.
What assumptions does it make?▾
Cash flows occur at year end; constant discount rate; no initial investment in this calculator.
How do I include initial investment?▾
Subtract it from the PV shown (NPV = PV of inflows minus initial outlay).
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