📉 Discount Rate Calculator
Find r from PV, FV, and n
How to Use This Calculator
1
Enter FV
Future amount you want to discount.
2
Enter PV
Current value equivalent.
3
Enter Years
Time between PV and FV.
Formula
PV = FV / (1+r)^n
r = (FV/PV)^(1/n) − 1
Example: PV=10000, FV=15000, n=5 → r = (1.5)^(1/5) − 1 = 8.45%
Frequently Asked Questions
What is a discount rate?
The required return used to convert future cash into present value.
How is it chosen?
Often WACC for companies, or opportunity cost/required return for investors.
Does compounding frequency matter?
Yes, this version assumes annual compounding; adjust if using other frequencies.