Discount factor
- Japanese
- 割引係数
- Also known as
- DF
- Last reviewed
- September 23, 2026
This is a draft, shown for review before publication.
A discount factor is the value today of one unit of money to be received at a future date. Multiplying a future amount by it gives the present value.
Related terms
Explained in detail
Pages that use this term
- Compounding and Discounting
- Zero Rates and Forward Rates
- Day Count Conventions
- Bootstrapping a Yield Curve
- The Multi-Curve Framework
- Curve Interpolation
- How Swaps Work
- Put-Call Parity
- Valuing an Interest Rate Swap
- Basis Swaps
- Amortizing Swaps
- Caps and Floors
- Swaptions
- Bermudan Swaptions
- FX Option Market Conventions
- FX Barrier Options
- Dividend Swaps and Futures
- Pricing a CDS
- Synthetic CDOs and Tranches
- Inflation Caps and Floors
- Risk-Neutral Valuation
- The Black-Scholes Model
- The Black and Bachelier Models
- Collateral and Discounting
- CVA and DVA
- FVA and MVA
- The LIBOR Market Model (LMM)
- The SABR Model
- Local Volatility Models
- Wrong-Way Risk
- Capital Valuation Adjustment (KVA)