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discount rate

noun

1
: the interest on an annual basis deducted in advance on a loan
2
: the charge levied by a central bank for advances and rediscounts

Examples of discount rate in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Stays booked though December 3 feature special discount rates of up to 35 percent off. Amelia McBride, Travel + Leisure, 22 Nov. 2025 Heath Ward, executive director of the Springdale Water Utilities, said the utility staff and its attorney have been researching the question of a discount rate for seniors. Arkansas Online, 9 Nov. 2025 Polis said cash donations to food banks will buy more total food than the direct payments to SNAP recipients because food banks across Colorado can buy at discount rates. Nick Coltrain, Denver Post, 23 Oct. 2025 Yet the focus on deal days comes even as retailers hold steady on discount rates—and many consumers look for more than just the lowest price. Alex Vuocolo, Fortune, 7 Oct. 2025 See All Example Sentences for discount rate

Word History

First Known Use

1827, in the meaning defined at sense 1

Time Traveler
The first known use of discount rate was in 1827

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Cite this Entry

“Discount rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/discount%20rate. Accessed 1 Dec. 2025.

Legal Definition

discount rate

noun
1
: the interest on an annual basis deducted in advance on a loan
2
: the interest levied by the Federal Reserve for advances and rediscounts

More from Merriam-Webster on discount rate

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