Discount future cash flows to find today's value of an investment
What is this? This calculator tells you what future money is worth today. If someone offers you $10,000 in 5 years, how much is that actually worth right now, given a 7% annual return you could earn elsewhere? It also calculates NPV (Net Present Value) and IRR (Internal Rate of Return) — the standard metrics for evaluating any investment.
Who it's for: Investors evaluating business purchases, real estate deals, stock dividends, or any investment with cash flows spread over time. Also useful for comparing two investments with different payment schedules.
Discount Rate & Initial Investment
Cash Flows
Year 1:/yr
Year 2:/yr
Year 3:/yr
Year 4:/yr
Year 5:/yr (incl. exit)
Results
Net Present Value (NPV)
—
PV of cash flows - investment
Internal Rate of Return
—
annual return rate
Payback Period
—
years to break even
Total Cash Flows (undiscounted)
—
sum of all CFs
Total PV of Cash Flows
—
today's value of CFs
Profit Multiple
—
money earned / invested
Year-by-Year Discounted Cash Flow
NPV assumes cash flows are received at year-end. IRR is calculated via Newton-Raphson iteration. Consult a financial advisor for major investment decisions.