Discount Rate Calculator
Enter the present value, the future value and the number of years to find the implied annual discount rate.
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Enter present value, future value and years to see the discount rate.
Worked example
With these example inputs:
- Present value$1,000
- Future value$1,500
- Number of years5 yr
Discount rate: 8.45%
- Total growth50.0%
Frequently asked questions
How is the discount rate calculated?
Divide the future value by the present value, raise it to one over the years and subtract one. Turning $1,000 into $1,500 over five years implies about 8.45%.
What is the discount rate used for?
It is the rate that brings a future cash flow back to today's value. A higher discount rate places less weight on money received far in the future.