Tools
Earnout present value calculator
For each milestone, enter the year, payment, and probability. Get the probability-weighted PV of the whole earnout package.
PV = (Payment × Probability) ÷ (1 + discount rate)^years per milestone, summed. Useful at term sheet stage to compare cash-up-front offers against larger nominal earnouts.
Illustrative only. Not financial advice. Real earnout valuation depends on milestone dependency, dispute mechanics, accelerator and clawback clauses, and the buyer’s operational covenants.