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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This shift would not only raise discount rates across the capital markets but would also directly pressure valuations—especially for long-duration equities like those dominating the NASDAQ. Conclusion: Are Markets Prepared? Bob Haber, Forbes.com, 22 July 2025 The fee is over multiple years, resulting in a net present value of between $400 million and $450 million, depending on the discount rate applied. Kurt Badenhausen, Sportico.com, 8 July 2025 Other savings would come from cost-cutting measures for the installation of electric vehicle charging infrastructure, renewable energy credits and the low-income discount rates offered by utilities. John Moritz, Hartford Courant, 4 June 2025 Local strawberry farmer Neil Ngata told the water authority board last week that the discount rate is keeping many farms in business. David Garrick, San Diego Union-Tribune, 28 May 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 28 Jul. 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

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