💵 DCF Calculator
Present value of projected cash flows
How to Use This Calculator
1
Enter Cash Flows
Projected annual cash flows, separated by commas.
2
Enter Discount Rate
Your required rate of return (e.g., WACC).
3
Optional: Terminal Growth
Long-run growth for terminal value (g < r recommended).
Formula
PV = Σ CF_t / (1+r)^t
TV = CF_n·(1+g) / (r−g), discounted back to today
Example: CF = [1000,1200,1500], r=10%, g=2% → compute PV of each, add discounted TV.
Frequently Asked Questions
What discount rate should I use?
Commonly WACC for firms, or required return for investors.
What if g ≥ r?
The Gordon formula breaks; use a different terminal estimate or cap g below r.
Are cash flows after-tax?
Use consistent definitions (e.g., free cash flow to firm or equity).