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
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Growth slows, competition increases, capital requirements rise, or the market applies a higher discount rate. Jim Osman, Forbes.com, 26 June 2026 Future picks are usually traded on discount rates, however. Doug Kyed, Boston Herald, 1 June 2026 The discount rate varies by hotel, so be sure to look into the offerings for the property of your choice. Hannah Chubb, Condé Nast Traveler, 7 Apr. 2026 That compression comes from increasing interest rates, which in turn equal a higher discount rate. Todd Gordon, CNBC, 31 Mar. 2026 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

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Cite this Entry

“Discount rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/discount%20rate. Accessed 5 Jul. 2026.

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

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