Click To View Links

Discounted Cash Flow Calculator

So now, exactly what does a discounted cash flow calculator do for you? Well, as a first time home buyer you really have to budget your money before you buy that first house. So below I will describe how this calculator works and explain ways it can help you make decisions for the future.

There's an old saying out there, "I have too much month left over at the end of my money". Does your cash flow situation look bleak at the end of each month? I know you understand what I'm talking about. This happens to many of us especially if we're younger and just getting started in setting up housekeeping.

discounted cash flow calculator

Sadly, our school systems do not really teach people how to budget their money. So I had this discounted cash flow calculator created to help visitors to my website make informed decisions.

How To Use A Discounted Cash Flow Calculator To Create A Budget

As you know, cash flow goes both in and out plus it varies each month. However with a little help you might be able to figure out how much you can actually afford to spend each month. Also, this will help you figure out how much money you can save each month.

I can remember when I first got married in 1976 and learned the hard way how having a budget became very important. Just because you have a little cash left over at the end of a month sometimes, can you really spend it? Or is it possible some or all of the extra money (does not happen too often) should be saved for other bills?

This discounted cash flow calculator is designed to convert all the inflows and outflows into monthly equivalents. This will make it easier so you can see how much money you can really afford to spend each month.

This is setup much like a budget for a business. When you think about it, you should run your household like a business anyway. So you'll notice the calculator below has several sections (6 in all) designed to help you think out each and every expense and source of income.

So starting at the top section, just work your way through each section giving careful thought to each line item. The first section is for cash inflows while the other 5 sections are for various types of outflows.

Once you complete each section, after giving thought to each line item and how many times money comes in and goes out, you will find a really tight budget for yourself. 

So for example, maybe you get paid every two weeks. If that is the case, you enter 26 payments and the amount you get paid every two weeks. The calculator will figure your annual income for you. Also, it carries it forward on into the other sections. If you have a car payment, well you enter 12 and the amount you pay each month and this also will carry forward for you. 

Then as you enter the cash outflows, it will subtract it from your income and once you're done you end up with a true picture of your financial standing. 

So now you see why I call this a discounted cash flow calculator since at the end of the month your cash is discounted by all the expenses. Each section will give you a monthly total. The very bottom section will show you all the totals for cash inflow and outflows. Then just click the orange button at the bottom that says "create report" and you can print off the results.

Hopefully you'll find this helpful in planning to buy your first home. It's very important that you take all income and expenses into account so you can have a realistic picture of your monthly budget. Be sure to allow for a little cushion. Things can change from month to month.

Discounted Cash Flow Calculator
Cash Inflows
Example Accounts Inflow
Description
# of Pmts
Per Year
Amt of
Each Pmt
Monthly
Amount
Your Primary Job
Spouse's Primary Job
Your Second Job
Spouse's Second Job
Your Business Revenues
Spouse's Business Revenues
Interest & Dividend Income
Rental Income
Cash Gifts
Gambling Winnings
Rummage Sale Receipts
Tax Refund
Instructions
Inflows
Administrative
Personnel
Transportation
Residential
Entertainment
Totals
Total Monthly Inflow:
Adminstrative Outflows Balance Forward:
Example Accounts Outflow
Description
# of Pmts
Per Year
Amt of
Each Pmt
Monthly
Amount
Savings Deposits
Investment Deposits
Office Supplies
Postage
Basic Phone
Tax Preparation
Computer Supplies
Legal Expenses
Misc. Payments
Brokerage Fees
Income Tax Payments
Health Insurance
Life Insurance
Charitable Gifts
Tools
Reference Materials
Classified Ads
Instructions
Inflows
Administrative
Personnel
Transportation
Residential
Entertainment
Totals
Total Monthly Adminsitrative Outflow:
Personnel Outflows Balance Forward
Example Accounts Outflow
Description
# of Pmts
Per Year
Amt of
Each Pmt
Monthly
Amount
Groceries
Vegetable Gardening
School Lunches
Toiletries & Grooming
Hair & Make-up
Medical, Dental, & Optical
Medication & Prescriptions
Clothing & Laundry
Dry Cleaning
Education
Daycare
Child Support
Health Club Memberships
Therapy
Instructions
Inflows
Administrative
Personnel
Transportation
Residential
Entertainment
Totals
Total Monthly Personnel Outflow:
Transportation Outflows Balance Forward
Example Accounts Outflow
Description
# of Pmts
Per Year
Amt of
Each Pmt
Monthly
Amount
Gasoline
Car Repairs & Maintenance
Car Insurance
Car Payments
Lease Payments
Fares and tolls
Parking
Licenses & Permits
Fines & Tickets
Instructions
Inflows
Administrative
Personnel
Transportation
Residential
Entertainment
Totals
Total Monthly Transportation Outflow:
Residential Outflows Balance Forward
Example Accounts Outflow
Description
# of Pmts
Per Year
Amt of
Each Pmt
Monthly
Amount
Grounds Maintenance
Building Repairs & Maint.
Cleaning Supplies
Furniture & Fixtures
Appliances
Pest Control
Interior Decorating
Rent or Lease Payments
Mortgage Payments
Property Taxes
Propane, Fuel Oil, & Wood
Electricty
Property Insurance
Snow Removal
Alarm Systems
Instructions
Inflows
Administrative
Personnel
Transportation
Residential
Entertainment
Totals
Total Monthly Residential Outflow:
Entertainment Outflows Balance Forward
Example Accounts Outflow
Description
# of Pmts
Per Year
Amt of
Each Pmt
Monthly
Amount
Movies & Theatrical
Long Distance Calls
Vidio & Movie Rental
Cable & Satelite
Sporting Events & Activities
Hobbies & Crafts
Games, Arcade, and Amusement
Parties & Entertaining
Gifts
Dining Out
Nightclubs
Gambling
Pets & Pet Supplies
Music
Vacation Propery Payments
Vacation & Travel
Instructions
Inflows
Administrative
Personnel
Transportation
Residential
Entertainment
Totals
Total Monthly Entertainment Outflow:
Summary of Inflow and Outflows
Links Category Outflows Inflows
Instructions
Inflows
Administrative
Personnel
Transportation
Residential
Entertainment
Totals
Monthly Inflow
Monthly Administrative Outflow
Monthly Personnel Outflow
Monthly Transportation Outflow
Monthly Residential Outflow
Monthly Entertainment Outflow
Total Monthly Outflows
Net Cash Flow

Leave Discounted Cash Flow Calculator and return to Mortgage Calculators main page.

Return to First Time Home Buyer Solutions home page.

New Jersey Grants

Click on Image to Learn More

South Carolina Grants

Click on Image to Learn More

Recent Articles

  1. HELP WANTED!! Will Trump Be There For First Time Home Buyers?

    Mar 29, 17 03:06 PM

    To all my dear readers of this blog. Back in January of this year, I wrote you to share what I thought was good news for the first time home buyer. FHA announced on January 9th, 2017 that they were go…

    Read More

  2. Arkansas First Time Home Buyer Grants | Programs | Down Payment Assistance

    Mar 20, 17 05:33 PM

    Pursuing any Arkansas first time home buyer grants to purchase that home? Find the best grants for home buying in Arkansas and other home mortgage programs available on this page.

    Read More

  3. Massachusetts First Time Home Buyer Grants | Programs | Down Payment Assistance

    Mar 14, 17 12:16 PM

    Chasing after Massachusetts first time home buyer grants to buy that home? Discover the best grants for home buying in Massachusetts and other home mortgage programs available on this page.

    Read More

Buyer Programs

fha loans

The FHA Loan Products

Home Buyer Grants

zero down home loans

Zero Down Home Loans


Follow Us On Twitter

follow me on twitter