Discount Factor Calculator
About Discount Factor Calculator
The 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