How to Use

Enter the Discount Rate (%), typically the expected rate of return or cost of capital.
Enter the expected Cash Flow for each future year.
Click 'Add Year' to include more years in your projection.
Click the 'Calculate DCF' button.
View the calculated Total Discounted Cash Flow value.

Tips

A higher discount rate results in a lower present value of future cash flows.
The DCF model assumes future cash flows are predictable; actual results may vary.
All calculations are performed locally in your browser; no financial data is uploaded.

Calculation Principles & Formula

What is Discounted Cash Flow (DCF)?

Discounted Cash Flow (DCF) analysis is a valuation method used to estimate the value of an investment based on its expected future cash flows. It attempts to figure out the value of an investment today, based on projections of how much money it will generate in the future.

DCF Formula

The formula for calculating DCF is:

DCF = CF₁ / (1+r)¹ + CF₂ / (1+r)² + ... + CFₙ / (1+r)ⁿ

Variable Definitions

**CF (Cash Flow)**: The cash flow for a given year.
**r (Rate)**: The discount rate, usually representing the cost of capital or required rate of return.
**n**: The time period (year).