Business Calculators

Business Valuation - Discounted Cash Flow Calculator

Estimate a business’s value by discounting its projected future cash flows — plus a terminal value — back to today at your required rate of return.

Inputs

Annual cash flow (year 1)

Annual cash flow growth

Discount rate (required return)

Projection period (years)

Terminal growth rate

Estimates only. Change any value to recalculate instantly.

Estimated business value $2,195,020 discounting 5 years of cash flow at 12.00%

PV of projected cash flow $788,010

PV of terminal value $1,407,010

Enterprise value $2,195,020

Implied multiple 11.0× of year-1 cash flow

Sources of value

Projection period $788k
Terminal value $1.4M

Cash flow Projected cash flowPresent value

DCF values a business as the present value of its future cash flows. The terminal value — what the business is worth beyond the projection — often dominates, so the discount and terminal-growth assumptions matter enormously.

Projected cash flow and present value by yearView table

Year	Cash flow	Present value
1	$200,000	$178,571
2	$210,000	$167,411
3	$220,500	$156,948
4	$231,525	$147,138
5	$243,101	$137,942
Terminal	$2,479,633	$1,407,010

How this calculator works

This calculator runs entirely in your browser — nothing you enter is sent anywhere, and there is no sign-up. Change any input and the result, breakdown, and schedule update instantly.

Rate and cost fields are pre-filled with current benchmarks (Federal Reserve / Freddie Mac via FRED (St. Louis Fed)), so your first result is already realistic — replace them with your own quote to see your numbers. To weigh one option against another, use the loan comparison calculator.

Common questions

Is this calculator free, and do I need to sign up?

Yes and no — it is completely free and asks for no account or personal details. Every calculation happens in your browser, so nothing you type is stored or sent to us.

How accurate are the results?

The math is exact for the inputs you give it, but the defaults are national benchmarks — your real rate, fees, taxes, and insurance will differ. Treat the result as a close estimate to refine with a real quote.