PV of Cash Flows Calculator (DCF) 💰

1. Set Annual Discount Rate

Please enter a valid annual discount rate (non-negative).
The constant rate used to discount all future cash flows (often the WACC).

2. Enter Future Cash Flows (CFt)

Cash Flows Summary:

Total Current Value of All Cash Flows

Sum of Discounted Cash Flows (PV) $0.00
Total Undiscounted Cash Flows
Discount Rate Used

Individual Cash Flow Details

Year (t) Cash Flow (CFt) PV Factor (1/(1+r)t) Present Value (PV)

Understanding Discounted Cash Flow

How to Use a Present Value of Cash Flows Calculator in 5 Simple Steps
A Present Value of Cash Flows Calculator helps you determine what a series of future payments is worth today. This tool is essential for investment analysis, business valuation, and financial planning when cash flows vary from period to period.

1. Enter Each Cash Flow Value
  • Add all expected cash inflows or outflows for each period (yearly, monthly, etc.).
  • You can enter different amounts for every period depending on your financial projection.
  • If you have many cash flows, list them in order to avoid mistakes.
2. Select the Time Period for Each Cash Flow
  • Assign the correct period number (e.g., Year 1, Year 2, Month 6).
  • The calculator discounts each future cash flow based on its time position.
  • Longer time periods reduce present value due to more discounting.
3. Enter Your Discount Rate
  • This percentage represents your expected rate of return or opportunity cost.
  • A higher discount rate decreases the present value of future cash flows.
  • Use realistic rates (e.g., 5–12% for investment decisions, depending on risk).
4. Review the Cash Flow Summary for Accuracy
  • Double-check each entry—amount, timing, and sign (positive or negative).
  • Ensure inflows are marked as positive and outflows as negative.
  • Accurate inputs lead to accurate valuation results.
5. Click "Calculate" to Get the Present Value
  • Instantly see the present value of all your combined cash flows.
  • Use the result for investment comparison, business valuation, or financial planning.
  • Try different discount rates to understand risk and sensitivity.

Related Calculators

Net Present Value
PV of Annuity
FV of Cash Flows

FAQs About PV of Cash Flows & DCF

The Present Value (PV) of Cash Flows is the sum of the discounted future cash flows only. Net Present Value (NPV) is the PV of the cash flows minus the initial investment (the cash flow at Year 0, which is typically a negative number). If you include the initial investment in this calculator, the result is the NPV.

For most Discounted Cash Flow (DCF) valuations, the Discount Rate used is the firm's Weighted Average Cost of Capital (WACC). This rate represents the average cost of financing the company's assets, and is the minimum rate of return required for a project to increase firm value.

Yes, but you must adjust your inputs. If you enter the cash flows by month (Period 1, 2, 3...), you must use the Periodic Rate (Annual Rate / 12) as your discount rate and label your periods as months instead of years. This tool assumes end-of-period cash flows.