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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With D
  5. Discount Rate

Discount Rate

Definition of 'Discount Rate'

The percentage rate required to calculate the present value of a future cash flow.

For example if investing at 4% interest, then the present value is discounted by 4% as it is worth less than future earnings due to interest.

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Related Terms

Deep DiscountDiscountDiscount Market DepositInternal Rate of ReturnFlat RateDiscount FactorProxy BetaFloating Rate NoteForward PointsHurdle RateDiscount BrokerDiscount HouseEarly-Settlement DiscountEarnings DilutionPresent ValueRights IssueTreasury BillsAccrual RateAnnualise Percentage Rate of InterestBusiness Rate

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