A tremendous amount of recent attention has focused on characterizing the dynamical properties of periodically driven many-body systems. Here, we use a novel numerical tool termed "density matrix truncation" (DMT) to investigate the late-time dynamics of large-scale Floquet systems. We find that DMT accurately captures two essential pieces of Floquet physics, namely, prethermalization and late-time heating to infinite temperature. Moreover, by implementing a spatially inhomogeneous drive, we demonstrate that an interplay between Floquet heating and diffusive transport is crucial to understanding the system's dynamics. Finally, we show that DMT also provides a powerful method for quantitatively capturing the emergence of hydrodynamics in static (undriven) Hamiltonians; in particular, by simulating the dynamics of generic, large-scale quantum spin chains (up to L ¼ 100), we are able to directly extract the energy diffusion coefficient.