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Discounted Cash Flow Calculator

Work out discounted cash flow instantly with clear inputs, formula shown and shareable results.

About Discounted Cash Flow Calculator

Discounting future cash flows and subtracting the outlay gives net present value — the value created in today's money. The IRR is the discount rate at which that value is exactly zero, and the project is worth doing when the IRR exceeds the required return.

Formula

NPV and IRR

NPV = Σ CFₜ/(1+r)^t - C₀; IRR solves NPV = 0

Worked example

With the default values below, Discounted Cash Flow Calculator returns Net Present Value of $1,321,470.07. Change any input above and every figure here is recalculated in your browser.

Inputs used

Initial Investmentminimum 0
10,000,000
Annual Cash Flowminimum 0
2,200,000
Discount Rateaccepts 0–100 %
11 %
Number Of Yearsaccepts 1–40
8

Results

Net Present Value
$1,321,470.07
Present Value Of Cash Inflows
$11,321,470.07
Internal Rate Of Return
14.610%
Simple Payback Period
4.55 years

Step by step

  1. 1Values used
  2. 2NPV and IRR
  3. 3Net Present Value= 1,321,470.07
  4. 4Present Value Of Cash Inflows= 11,321,470.07
  5. 5Internal Rate Of Return= 14.610
  6. 6Simple Payback Period= 4.55 years

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Which matters more, NPV or IRR?

NPV, because it measures value in currency. IRR can mislead when projects differ in size or cash flow shape.

Why is simple payback shown?

As a liquidity check. It ignores discounting entirely, so it should never be the deciding measure.

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