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
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When the valuation assumes a low discount rate and optimistic timing, the deal looks stronger; when the valuation reflects higher risk and real‑world uncertainty, the value declines sharply. Michelle Grau, Sun Sentinel, 3 Mar. 2026 Long-duration risk assets, such as technology growth stocks, could also benefit from lower discount rates. Garth Friesen, Forbes.com, 26 Jan. 2026 Look for discount rates for medications through services like GoodRX or Amazon's prescription service. Nicole Villalpando, Austin American Statesman, 9 Jan. 2026 The three-year residencies give the companies scheduling advantages, more visibility, a discount rate to perform at the society’s state-of-the-art concert hall and much more. Beth Wood, San Diego Union-Tribune, 21 Dec. 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 12 Mar. 2026.

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

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