**How to Calculate the Discount Factor or Discount Rate ...**
https://www.sapling.com/6516198/calculate-discount-factor

Mar 08, 2018 · To calculate the discount factor for a cash flow one year from now, divide 1 by the interest rate plus 1. For example, if the interest rate is 5 percent, the discount factor is 1 divided by 1.05, or 95 percent. For cash flows further in the future, the formula is 1/ (1+i)^n, where n equals how many years in the future you'll receive the cash flow.

**DA:** 91 **PA:** 19 **MOZ Rank:** 25