Finicade
Sign in
Quant & Pricing

Discount Factor

The number you multiply a future cash flow by to get its value today — always less than one, and smaller the further out or the higher the rate. It's the time value of money boiled down to a single multiplier.

Where this is taught

Definitions are the trailer. These free levels turn Discount Factor into something you play — one bite-size lesson, with worked examples, a quiz and XP.

← All Quant & Pricing terms & the full glossary