# Discount Factor

*Quant & Pricing — Finicade finance glossary*

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.

**Related terms:** [Present Value](https://finicade.com/glossary/present-value), [Time Value of Money](https://finicade.com/glossary/time-value-of-money), [Interest Rate](https://finicade.com/glossary/interest-rate)

**Taught in:** Hull Street — Interest Rates, Essentials

Source: https://finicade.com/glossary/discount-factor