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DCF Calculator
Use this discounted cash flow calculator to estimate the present value of projected future cash flows and an optional terminal value.
Enter one annual cash flow per year, separated by commas.
Estimated Present Value0.00
PV of Forecast Cash Flows0.00
Terminal Value0.00
PV of Terminal Value0.00
Forecast Years0
How to Use the DCF Calculator
Enter projected cash flows, a discount rate and any terminal assumptions required by the tool to estimate discounted cash flow value.
Practical Example
If future cash flows total more than their undiscounted amount but are discounted back at 10%, the present value will be lower than the nominal future total.
Factors That Affect the Result
Growth assumptions, discount rate, terminal value, forecast period and cash-flow quality can materially change a DCF estimate.
Frequently Asked Questions
Why are future cash flows discounted?
Because money available today generally has greater value than the same amount received later.
Is DCF sensitive to assumptions?
Yes, especially discount and growth rates.
Is DCF a guaranteed valuation?
No. It is an estimate based on assumptions.