What does discount rate mean?

Definitions for discount rate
dis·coun·t rate

This dictionary definitions page includes all the possible meanings, example usage and translations of the word discount rate.

Princeton's WordNet

  1. discount ratenoun

    the rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve System

  2. discount rate, discount, bank discountnoun

    interest on an annual basis deducted in advance on a loan


  1. discount ratenoun

    An interest rate that a central bank charges depository institutions that borrow reserves from it.

  2. discount ratenoun

    The interest rate used to discount future cashflows of a financial instrument; the annual interest rate used to decrease the amounts of future cashflows to yield their present value.


  1. discount rate

    The discount rate is a financial term that refers to the interest rate used to determine the present value of future cash flows. It is used in financial modeling to calculate the time value of money, representing the potential for a larger return on investment from future cash flows than from present ones. This rate can be influenced by factors such as risk, inflation, the general state of the economy, and the investment opportunities available. Essentially, it's used to calculate the discounted value of a sum of money to be received in the future compared with its present value.


  1. Discount rate

    The discount rate can mean ⁕an interest rate a central bank charges depository institutions that borrow reserves from it, for example for the use of the Federal Reserve's discount window. ⁕the same as interest rate; the term "discount" does not refer to the common meaning of the word, but to the meaning in computations of present value, e.g. net present value or discounted cash flow ⁕the annual effective discount rate, which is the annual interest divided by the capital including that interest; this rate is lower than the interest rate; it corresponds to using the value after a year as the nominal value, and seeing the initial value as the nominal value minus a discount; it is used for U.S. Treasury bills and similar financial instruments

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How to pronounce discount rate?

How to say discount rate in sign language?


  1. Chaldean Numerology

    The numerical value of discount rate in Chaldean Numerology is: 9

  2. Pythagorean Numerology

    The numerical value of discount rate in Pythagorean Numerology is: 5

Translations for discount rate

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"discount rate." Definitions.net. STANDS4 LLC, 2023. Web. 24 Sep. 2023. <https://www.definitions.net/definition/discount+rate>.

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