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Discounted Cash Flow (DCF) Calculator

Value a stream of cash flows that grows at one rate for some years and another rate after, discounted to today.

Change the values and press Calculate to work out your own figures.

Enter the cash flow, discount rate and growth stages.

About cash flowThis year's (or each year's) cash flow.
About interest rate, % a yearNominal annual rate.
About growth rate, %Yearly growth during the growth years.
About growth yearsYears of growth.
About currencyChanges how amounts are shown, not the math; your choice is remembered on this device.
About terminal growth rate, % (optional)Growth after the growth years; 0 if blank.
About terminal years (optional)Years after the growth years; 0 if blank.
Result
Value
$14.98
Growth stage
$11.58
Terminal stage
$3.40

The cash flows are worth $14.98 today.

Show the working
  1. value = Σ cash flowₜ ÷ (1 + r)^t

How to use it

Enter the cash flow, discount rate and growth stages.

Enter amounts without commas or with them; rates are percentages (5 for 5%). Negative amounts are allowed where a sign means money paid out.

Key facts

value = Σ CF × (1 + g)^t ÷ (1 + r)^t over the growth years, then CF × (1 + g)^G × (1 + g′)^(t − G) ÷ (1 + r)^t

Questions

What is $1 growing 2% for 20 years then 1% for 20 years worth at 8%?

$14.98.

Formulas

value = Σ CF × (1 + g)^t ÷ (1 + r)^t over the growth years, then CF × (1 + g)^G × (1 + g′)^(t − G) ÷ (1 + r)^t

Sources

Limitations

  • Results are estimates for planning, not offers or financial advice; lenders and banks may round, count days or time payments differently.
  • Rates are nominal annual rates compounded as you choose; payments at a different frequency use the equivalent periodic rate.

Formula version 0.1.0Reviewed