Calculate the discounted payback period (DPP) from your Initial Investment Amount using the discount rate and the duration of the investment (number of years)
The Discounted Payback calculator allows investors to calculate the return duration and rates of capital investments based on current returns. This in turn provides insight into how the investment is performing.
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| Initial Investment ($): | ||
| Discount Rate, % : | ||
| Number of Years: | ||
| Year: | Annual Cash Flow: | |
| Year 1 | ||
PV = Present Value: The present value is the current value of a future sum of money or flows of money (payments into a cash pot for example). This allows you to identify how much your money is worth now in terms of what it will be worth in the future. This is particularly important when understanding your future assets or debts.
CF = Cash Flow: The total value of the investment into the fund over a specific period, in this Discounted Payback Period (DPP) calculator, the period being one year.
NCF = Net Cash Flow: The net cash flow is the difference between cash in and out.
DCF = Discounted Cash Flow: The discounted cash flow is the calculation used to estimate the value of the investment based on the future cash flows.
CDCF = Cumulative Discounted Cash Flow: The running total of all DCF calculations.
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