Money Tools

Discounted Cash Flow Calculator

Estimate the present value of a five-year series of future cash flows using a discount rate.

Updated April 16, 2026
Free online tool
Planning and research use

Why this page exists

Future cash flows are easier to compare when they are translated into present-value dollars instead of being left as raw future amounts. This calculator helps visitors estimate the discounted present value of five yearly cash flows using a discount-rate assumption so they can get a quick simplified DCF view.

Interactive tool

Run the estimate

Enter your numbers and read the result first, then use the sections below to understand what affects the outcome.

Calculator

Discounted cash flow calculator

Estimate the present value of a five-year series of future cash flows using a discount rate.

Result

$57,342.39

Estimated total discounted value based on the present value of each future yearly cash flow entered.

Total discounted value$57,342.39

Year 1 present value$11,009.17

Year 2 present value$11,362.68

Year 3 present value$11,582.75

Year 4 present value$11,689.02

Year 5 present value$11,698.76

Discount rate used9.00%

Discounting the five future cash flows at 9.00% produces a total present-value estimate near $57,342.39.
The year-one cash flow discounts to $11,009.17, and later years lose more present-value weight because they are discounted over more periods.
Use this as a simplified valuation estimate only, because real DCF work often includes terminal value, irregular timing, and more detailed cash-flow assumptions.

This is a simplified discounted-cash-flow estimate, not investment advice. It assumes evenly spaced yearly cash flows and depends entirely on the discount rate and cash-flow assumptions entered.

Planning note

Last updated April 16, 2026. Use this tool to compare scenarios and plan ahead, then confirm important details with the lender, employer, insurer, contractor, or other qualified provider involved in the final decision.

How it works

What the calculator is doing

Enter the projected cash flow for each year and the discount rate you want to apply.

The calculator discounts each year's cash flow back to the present using standard present-value math.

It shows the present value of each cash flow and the total discounted value of the five-year series.

Understanding your result

This is a simplified valuation estimate, not investment advice. It is most useful as a quick planning tool, because full DCF models often include terminal value, more years, and more detailed assumptions.

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Examples

Ways people use this tool

Example scenarios help turn a quick estimate into a more useful comparison or planning step.

Translate a five-year forecast into today's dollars

A discounted value can be easier to compare than raw future cash flows viewed on their own.

Check sensitivity to the discount rate

Changing the discount rate can show how quickly later cash flows lose present-value weight.

Use it as a simplified valuation screen

A quick DCF estimate can be a useful starting point before moving into more detailed valuation work.

FAQ

Common questions

What does discounted cash flow mean?

Discounted cash flow converts future cash flows into present-value dollars so you can compare those future amounts in today's terms.

Why does the discount rate matter so much?

Because a higher discount rate reduces the present value of future cash flows more aggressively, especially in later years.

Why is this only a simplified DCF estimate?

Because it uses a short fixed cash-flow window and does not include a terminal value, changing reinvestment assumptions, or more advanced modeling choices.

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Money ToolsUpdated April 12, 2026