Discount Rate Calculator
What is Discount Rate Calculator ?
The discount rate calculator is a free online tool. It calculates the discount rate by using future cash flows, present value, and the number of years input data.
Discount Rate Formula
DR = ((FCF / PV ) ^ 1/n – 1)*100
- Where DR is the discount rate
- FCF is the future cash flows
- PV is the present value
- n is the number of years
Example
For example, if the FCF is 500, PV is 5, and n is 3 ,then we're doing something like this: ((500 / 5 ) ^ 1/3 – 1)*100=364.16%
