Discounted Cash Flow Calculator – Five Years
Value five year-end cash flows and a terminal value at year 5 using your annual discount rate.
Formula
DCF = Σ(CFt/(1+r)^t), t=1…5; add terminal/(1+r)^5; r=rate/100
Present value (money) ≈ (1,000)÷(1+(10)÷100)+(1,200)÷(1+(10)÷100)^2+(1,400)÷(1+(10)÷100)^3+(1,600)÷(1+(10)÷100)^4+((1,800)+(10,000))÷(1+(10)÷100)^5
How to use
- Enter net cash flows for years 1 to 5 in one currency.
- Enter year-5 terminal value and annual discount rate.
- Read present value before subtracting any initial purchase cost.
Examples
- At 0%, annual flows 10, 20, 30, 40, 50 plus terminal 100 are worth 250.
Frequently asked questions
When are cash flows received?
At each year end; terminal value is additional to year-5 cash flow.
What is terminal value?
Your estimate of value after year 5, entered as a year-5 amount, not today’s value.
Are negative cash flows allowed?
Yes. Enter outflows as negative amounts; this is a fixed five-year model.
Sources
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