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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
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 Most courses listed also offer discount rates for seniors. Langston Wertz Jr, Charlotte Observer, 27 May 2025 The discount rate applied to future corporate earnings increases - leading to lower present valuations - especially for high-growth tech stocks that dominate the S&P 500. Trefis Team, Forbes.com, 19 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

Browse Nearby Words

Cite this Entry

“Discount rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/discount%20rate. Accessed 26 Jun. 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

More from Merriam-Webster on discount rate

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!