Online Tools and Calculators > Financial Calculators > Discount Factor Calculator

Discount Factor Calculator

Discount rate: %
Number of compounding periods:

About This Tool

The online Discount Factor Calculator is used to calculate the discount factor which is the factor by which a future cash flow must be multiplied in order to obtain the present value.

Discount Factor Calculation Formula

The discount factor is calculated in the following way, where P(T) is the discount factor, r the discount rate, and T the discretely compounded over time:

P(T) = 1 / (1 + r)T

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