Present Value of Cash Flows Calculator
Discount an uneven stream of future cash flows back to today's dollars. Enter each period's cash flow and a discount rate — the calculator shows the discount factor, present value and cumulative PV for every period, plus a chart comparing each cash flow against its discounted value. For a single future lump sum, see our basic present value calculator instead.
Your cash flow stream
Cash flows (inflows positive, outflows negative)
Present value results
Per-period breakdown
| Period | Cash flow | Rate | Discount factor | Present value | Cumulative PV |
|---|
Cash flow vs present value
Worked example
$1,000 in year 1, $2,000 in year 2 and $3,000 in year 3, discounted at 8% per year. Each cash flow is multiplied by its discount factor 1/(1+r)t:
| Year | Cash flow | × Discount factor | = Present value |
|---|---|---|---|
| 1 | $1,000.00 | × 0.92592593 | $925.93 |
| 2 | $2,000.00 | × 0.85733882 | $1,714.68 |
| 3 | $3,000.00 | × 0.79383224 | $2,381.50 |
| Total present value | $5,022.10 | ||
Nominal total: $6,000.00. Time-value erosion at 8%: $977.90 — the cost of waiting, not a fee.
Frequently asked questions
How do you calculate the present value of a cash flow stream?
Discount each cash flow separately and add them up: PV = CF1/(1+r) + CF2/(1+r)^2 + ... + CFn/(1+r)^n. Example: $1,000, $2,000 and $3,000 received in years 1 to 3 at an 8% discount rate. The discount factors are 0.92592593, 0.85733882 and 0.79383224, so the present values are $925.93, $1,714.68 and $2,381.50 — a total present value of $5,022.10. This calculator performs every step and shows the full per-period table.
What is the difference between the present value of cash flows and NPV?
Present value of cash flows is the gross discounted value of the stream — $5,022.10 in the example above. Net present value (NPV) goes one step further and subtracts the upfront cost: NPV = PV of cash flows minus initial investment. Use this tool when you only need the discounted stream; use our net present value calculator when you are judging whether an investment beats its cost.
What is a discount factor and how is it computed?
The discount factor for period t is 1/(1+r)^t — the multiplier that converts a future cash flow into today's money. At 8%, the year-1 factor is 0.92592593 and the year-3 factor is 0.79383224. The further out a cash flow is, the smaller its factor, which is exactly why distant money is worth less today.
Can the cash flows be negative or zero?
Yes. Enter outflows as negative numbers and the calculator nets them against inflows; a zero simply contributes nothing in that period. For example, a stream of -$2,000 then +$5,000 at a 10% discount rate has a present value of -$1,818.18 + $4,132.23 = $2,314.05.
Can I use a different discount rate for each period?
Yes — switch on Variable rates and enter a rate per period. The calculator then discounts period t by the product (1+r1) x (1+r2) x ... x (1+rt). Example: $1,000 in year 1 at 5% and $1,000 in year 2 at 10% gives $952.38 + $865.80 = $1,818.18. A single flat rate is the default.
Why is the present value lower than the total of the cash flows?
The gap is the time value of money. $6,000 received as $1,000, $2,000 and $3,000 over three years is only worth $5,022.10 today at 8% — the $977.90 difference is the cost of waiting at your discount rate, not a fee. Raise the rate and the present value falls further.
What if my cash flows are the same every period?
Then you have an annuity and there is a shortcut: PV = PMT x [1 - (1+r)^-n] / r. This calculator still works if you repeat the same amount in every row, but our annuity calculator is purpose-built for equal payments and also solves for the payment itself.
Is this financial advice?
No. This tool is for education and illustration only — it is not financial advice. The result depends entirely on the discount rate you choose, which should reflect your own opportunity cost or cost of capital. For real investment decisions, consult a qualified professional.
Related calculators
Free tool by NRTechStudio