Discount factor

Discount factor: use discount rate per period, periods. Review the formula, worked example and calculation steps.

Inputs

Use the units shown
RESULT
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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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