Discount factor
Discount factor: use discount rate per period, periods. Review the formula, worked example and calculation steps.
Inputs
Use the units shown—
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Formula & explanation
DF = 1/(1+r/100)^n
Variables & units
- Discount rate per period
- % · minimum 0, maximum 1000
- Periods
- periods · minimum 0, maximum 1000
Worked example
At10% over2 periods, DF≈0.826446.
Assumptions
Use a rate corresponding to one period; excludes cash-flow-specific timing conventions.
Formula version 1.0.0. JavaScript floating-point arithmetic applies. Results display up to 6 decimal places; stored values retain available precision. Use the units shown.
Practice with an example
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