Discounted Cash Flow Calculator

Use our free DCF (Discounted Cash Flow) calculator to value an investment or business. Enter projected cash flows, discount rate, and terminal value assumptions to calculate the present value of future cash flows.

Financial

Currency

Year 1 Cash Flow

Year 2 Cash Flow

Year 3 Cash Flow

Year 4 Cash Flow

Year 5 Cash Flow

Discount Rate (WACC, %)

Terminal Growth Rate (%)

Terminal Multiple (optional)

Formula

Discounted Cash Flow (DCF) analysis is a valuation method that estimates the value of an investment based on its expected future cash flows. It discounts those cash flows to their present value using an appropriate discount rate.

DCF Value = Î£(CFt/(1+r)^t) + Terminal Value/(1+r)^n

Percentage: The percentage value you want to apply

Number: The original number or value

Result: The calculated result

How It Works

1Enter projected cash flows for 5 years.
2Enter the discount rate (WACC or required return).
3Optionally enter terminal growth rate or exit multiple.
4See the present value of each cash flow and total enterprise value.

Examples

$10k, $11k, $12.1k, $13.3k, $14.6k cash flows at 10% discount rate, 3% terminal growth

1.PV of Year 1 CF = $10,000/1.1 = $9,091
2.PV of Term Value = $14,641Ã—1.03/(0.10-0.03)/1.1^5 = $117,000
3.Total â‰ˆ $154,000

Result: $154,000

Frequently Asked Questions

The discount rate should reflect the risk of the investment. For public companies, WACC (Weighted Average Cost of Capital) is commonly used, typically ranging from 7-15%.

Terminal value represents the value of cash flows beyond the projection period. It can be calculated using the perpetuity growth method or the exit multiple method.

DCF is highly sensitive to assumptions about future cash flows, discount rates, and terminal values. Small changes in inputs can significantly change the valuation.

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DCF Valuation Guide

CalculateMe Team

Last updated: 2026-07-16

Frequently Asked Questions

The discount rate should reflect the risk of the investment. For public companies, WACC (Weighted Average Cost of Capital) is commonly used, typically ranging from 7-15%.

Terminal value represents the value of cash flows beyond the projection period. It can be calculated using the perpetuity growth method or the exit multiple method.

DCF is highly sensitive to assumptions about future cash flows, discount rates, and terminal values. Small changes in inputs can significantly change the valuation.

Discounted Cash Flow Calculator

Formula

How It Works

Examples

$10k, $11k, $12.1k, $13.3k, $14.6k cash flows at 10% discount rate, 3% terminal growth

Frequently Asked Questions

What is a good discount rate?

What is terminal value?

What is the limitation of DCF?

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Discounted Cash Flow Calculator

Formula

How It Works

Examples

$10k, $11k, $12.1k, $13.3k, $14.6k cash flows at 10% discount rate, 3% terminal growth

Frequently Asked Questions

What is a good discount rate?

What is terminal value?

What is the limitation of DCF?

Related Calculators

Related Articles