Corporate Finance Calculators and Guides

8 calculators · 4 guides

This hub holds the Calcumetrics calculators and guides for capital budgeting and valuation. It is part of the wider Business & Accounting hub and is aimed at finance students, analysts and founders who need to judge whether a project or company is worth the money.

For project decisions, the NPV calculator discounts a stream of cash flows at your required return, the IRR calculator finds the rate at which NPV is zero, and the payback and discounted payback calculators show how long it takes to recover the investment. For valuation, the WACC calculator builds a discount rate from the cost of equity and after-tax cost of debt, and the DCF calculator values a business from projected free cash flow plus a terminal value. The present value and future value calculators handle single amounts and series, which underpin all of the above.

The guides explain when NPV and IRR disagree, how to build a WACC step by step, how terminal value dominates most DCF models, and why discounted payback is a stricter test than simple payback. Each calculator shows its formula and a worked example, and runs entirely in your browser.

Part of the Business & Accounting hub.

Capital budgeting

Guides

Valuation and cost of capital

Guides

How to choose a corporate finance calculator

Start with the discount rate. The WACC calculator gives the blended cost of capital that most firms use as the hurdle rate for new projects. Feed that rate into the NPV calculator: a positive NPV means the project earns more than it costs to fund. The IRR calculator returns the rate at which NPV is zero, which is easier to compare across projects but can mislead when cash flows change sign more than once.

For a quick risk check, payback period shows how many years it takes to recover the outlay, and discounted payback does the same after discounting, so it is never shorter. To value a whole business, the DCF calculator adds a terminal value to projected cash flows. Present value and future value handle single amounts, such as what a payment due in five years is worth today.

Frequently asked questions

Why can NPV and IRR give different answers?
IRR assumes cash flows are reinvested at the IRR itself and can have several values when cash flows change sign more than once. NPV uses your actual required return, so when the two disagree on mutually exclusive projects, NPV is the safer guide.
What goes into WACC?
WACC = (E ÷ V) × cost of equity + (D ÷ V) × cost of debt × (1 − tax rate), where E and D are the market values of equity and debt and V = E + D. The tax term reflects that interest is usually tax-deductible.
How is terminal value calculated in a DCF?
With the Gordon growth method, terminal value = final-year free cash flow × (1 + g) ÷ (WACC − g), where g is a long-run growth rate below WACC. It is then discounted back to today along with the forecast-year cash flows.
What is the difference between payback and discounted payback?
Simple payback counts how many years undiscounted cash flows take to repay the investment. Discounted payback discounts each cash flow first, so it is always longer and accounts for the time value of money.

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