Discount Rate Calculator
Solve for the implied annual discount rate given present value, future value, and years.
Use the Discount Rate Calculator
Enter present value, future value, and years. The implied annual discount rate is calculated.
PV and FV
Present value, future value, and years.
Results
Implied discount rate (%)
10%
Rate such that PV grows to FV over the given years.
How this calculator works
We solve for the annual rate r such that future value equals present value compounded at r for the given years.
How to interpret your results
Use the rate to compare with your cost of capital or required return.
Common mistakes to avoid
Using the wrong time unit; mixing nominal and real; or applying the result to a stream of flows.
FAQs
What does this calculator do?▾
Given PV, FV and years, it finds the annual rate such that FV equals PV grown at that rate. Useful for implied returns.
Which inputs matter most?▾
All three: present value, future value, and number of years.
What assumptions does it make?▾
Single cash flow; annual compounding; constant rate over the period.
When would I use this?▾
To back out an implied return from a price and expected payoff, or to compare with a required discount rate.
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