Free calculator · Valuation & Returns
Discounted Cash Flow (DCF)
Estimates the value of an income property by projecting annual NOI, capitalizing a terminal value at an exit cap rate, and discounting both back to present value. Inputs are Year 1 NOI, an NOI growth rate, the hold period, exit cap rate, selling costs, and a discount rate.
By Devon Coombs, CPA, MBA · Teaching Professor of Finance, Santa Clara University · Reviewed August 2026
From the author: Devon Coombs, CPA, MBA teaches finance at Santa Clara University and works with corporate teams on practical AI.
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Discounted Cash Flow (DCF) Calculator
Assumptions
Projected cash flows
| Year | NOI | PV @ 8% |
|---|---|---|
| Year 1 | $1,498,425 | $1,387,431 |
| Year 2 | $1,543,378 | $1,323,198 |
| Year 3 | $1,589,679 | $1,261,939 |
| Year 4 | $1,637,369 | $1,203,515 |
| Year 5 | $1,686,491 | $1,147,797 |
| Terminal value (Yr 6 NOI $1,737,085 ÷ 6.25%) | $27,793,364 | |
| Net sale proceeds (after 2% selling cost), PV | $18,537,383 | |
PV of cash flows
$6,323,879
5 years of NOI
PV of sale
$18,537,383
reversion
DCF Value
$24,861,262
at 8% return
Learn the concept
This calculator comes from the free Real Estate Finance course, where the concept is taught with readings, worked examples, and practice questions.
When to use this measure
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Built by Devon Coombs, CPA, MBA, Teaching Professor of Finance at Santa Clara University.