Discount Factor Template

Discount Factor Template - Calculate the Value of Your Investment. Save money and time with our Discount Factor Template. Quickly calculate the present value of future cash flows and create a discount factor table with ease. Get the most out of your investments today!

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  • Template Rating1.0

Template Information

  • ReleasedJun 23, 2022
  • UpdatedOct 23, 2024
  • File TypeMicrosoft Excel
  • Demo Video No
  • File Size0.0
  • File SKU28

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Kumar S Devendra
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Discount Factor Template Description

This discount factor template helps you calculate the amount of discounted cash flows using explicit discount factors.

A discount factor is a decimal number multiplied by a cash flow value to discount it back to the present value.  The discount factor increases over time (meaning the decimal value gets smaller) as the effect of compounding the discount rate builds over time.

The discount factor is an alternative to using the XNPV or XIRR functions in Excel. As opposed to using the XNPV function, manually calculating the discount factor allows you to identify the present value of each individual cash flow.

The discount factor formula is:

Discount Factor = 1 / (1 x (1 + Discount Rate) ^ Period Number)

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