Discount Rate

Reference data and engineering information about discount rate for economics applications.

discountrate

Overview

Engineering reference data for Discount Rate in economics.

Key Formulas

Present Value

$PV = \frac{FV}{(1+r)^n}$

Discount a future value to present.

Net Present Value

$NPV = \sum_{t=0}^{n} \frac{C_t}{(1+r)^t}$

Sum of discounted cash flows.

Compound Interest

$FV = PV(1+r)^n$

Future value with compound interest.

Variables

Symbol	Description	Unit
$PV$	Present value	$
$FV$	Future value	$
$r$	Interest/discount rate	—
$n$	Number of periods	years

Discount Rate Applications

22 rows

Pre-calculated net price factors for common discount rate combinations. Multiply the list price by the factor to get the final net price.
Discount Rate Combination	Net Price Factor
10%	0.9
10% - 10%	0.81
20%	0.8
20% - 5%	0.76
20% - 5% - 5%	0.722
20% - 10%	0.72
20% - 10% - 10%	0.648
25%	0.75
25% - 5%	0.7125
25% - 5% - 5%	0.6769
25% - 5% - 10%	0.6413
25% - 10%	0.675
25% - 10% - 5%	0.6413
25% - 10% - 10%	0.6075
25% - 10% - 10% - 5%	0.5771
30%	0.7
30% - 5%	0.665
30% - 5% - 5%	0.6318
30% - 5% - 10%	0.5985
30% - 10%	0.63
30% - 10% - 5%	0.5985
30% - 10% - 10%	0.567

Source: engineeringtoolbox.com

Definitions

List Price (L): The original, pre-discount price of an item.
Net Price (N): The final price after applying one or more discount rates.
Discount Rate (i): The percentage deduction applied to the list price. In a sequence of multiple discounts, each rate (i₁, i₂, ...) is applied successively to the intermediate price.

Interactive Charts

Pre-calculated net price factors for common discount rate combinations. Multiply the list price by the factor to get the final net price.

References

Original Source

Source: engineeringtoolbox.com