Multi-Scenario, Multi-Rule Smart Decisions: The Discounted Cash Flow (DCF) Calculator
Enter each period's cashflows and the discount rate to instantly get NPV, terminal value, discounted payback period, and more.
Suited to project investment analysis, corporate financial decisions, and similar scenarios.
Supports multiple cashflow input modes and terminal value growth models.
Calculator Guide: Usage and Principles
What is Discounted Cash Flow (DCF)?
Discounted Cash Flow (DCF) is a project appraisal method based on the present value of future cashflows, widely used in corporate investment decisions, M&A valuation, and beyond. The core idea: money received in the future must be discounted to today's value before it can be compared and turned into decisions.
Discounted Payback Period
The discounted payback period is the number of years it takes for the cumulative present value of a project's net cashflows to cover the initial investment. It accounts for the time value of money, making it more rigorous than the traditional static payback period.
- If the cumulative present value has not turned positive by the end, the result shows "Not recovered".
- See the results breakdown above for the calculation method.
Key Parameters Explained
- Discount rate: Typically the cost of capital or a bank loan interest rate.
- Terminal value: Captures the value of the cashflows a company or project keeps generating beyond the forecast horizon.
- Cashflow input: Choose table or batch entry; pasting from Excel is supported.
When to Use It
- Corporate project approval and post-investment review
- Startup and venture decisions
- Personal finance and asset valuation
- Coursework and corporate finance exam practice
