DCF Calculator
Discounted cash flow — value a stream of future cash flows in today's money. The bedrock of valuation.
Free · No signup · By the analysts at Blackridge Research · Updated 2026-07-18
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What this means
Adjust the inputs to calculate.
About the DCF Calculator
Discounted Cash Flow (DCF) valuation values a stream of future cash flows in today's money.
It is the bedrock of business valuation and investment analysis.
Formula
PV = FV / (1 + r)^n
- PV
- — Present Value
- FV
- — Future Value
- r
- — Discount Rate
- n
- — Number of Periods
How to use this calculator
- 1
Enter future value
The cash flow in the future.
- 2
Enter discount rate
The rate used to discount future cash flows.
- 3
Enter time period
The number of years until the cash flow is received.
Example calculations
Single cash flow valuation
You expect to receive $100,000 in 5 years at a 10% discount rate.
PV = $100,000 / (1.10)^5 = $62,092.
- Present Value:
- $62,092
- Discount Factor:
- 0.621
The present value of $100,000 in 5 years at 10% discount rate is $62,092.
Interpreting your results
DCF is the foundation of all valuation methods.
The discount rate should reflect the risk of the cash flows. Higher risk = higher discount rate.
Need the market data behind this calculator?
The DCF Calculator is only as good as its inputs. Blackridge Research publishes syndicated market reports with vetted market sizes, growth rates, and competitive landscapes across 40+ industries — and builds custom studies when the shelf report doesn't exist.
Industry applications
Business
- Business valuation: value companies and assets.
- Investment analysis: value investment opportunities.
- Capital budgeting: evaluate projects.
Construction
- Project valuation: value construction projects.
- Infrastructure: value long-term infrastructure assets.
Research
- Valuation research: DCF is the standard valuation method.
- Financial analysis: value cash flows for analysis.
Common mistakes to avoid
-
✗ Using the wrong discount rate
The discount rate must reflect the risk of the specific cash flow.
-
✗ Ignoring terminal value
For continuing businesses, terminal value is a significant portion of total value.
Frequently asked questions
›What is a DCF valuation used for?
It's used to value businesses, projects, and investments by discounting future cash flows.
›How do I determine the discount rate?
Use WACC for the company or a project-specific required return that reflects risk.
Glossary
- DCF:
- Discounted Cash Flow — a valuation method based on the present value of future cash flows.
- Present value:
- The current value of a future cash flow after discounting.
- Discount rate:
- The rate used to discount future cash flows to present value.
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