# Discount factor

Calculate the Discount factor with our free online tool using the input parameters: Discount Rate, Discretely Compounded Over Time

The discount factor, an essential component in determining the present value of future cash flows, is obtained by multiplying the cash flow by a specific factor. This factor is derived from the discount rate and the number of compounding periods. Calculate the discount factor with ease using our online calculator, taking into account the discount rate and compounding periods. Ensure accurate financial analysis and decision-making by understanding the discount factor’s impact on present value calculations.

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Number of calculations

**Where**:

`P(T)`

= Discount Factor

`r`

= Discount Rate

`T`

= Number of Compounding Periods