# discounting

/ˈdɪsˌkaʊnɪŋ/ (US) · /dˈɪskaʊntɪŋ/ (UK) · CEFR B2 · Verb

Source: https://englishreference.com/word/discounting
Updated: 2026-05-18

## Definition

to reduce the value of something in the future when you calculate its cost today. You use this when you want to compare prices or values that happen at different times.

For teachers: the process of adjusting the value of a future sum of money or assets to its present value by applying a discount rate. Often used in financial contexts to evaluate the profitability of an investment.

## Examples

- The bank is discounting the loan to get a better rate.
- By discounting the future cash flows of the project, the company can determine if the investment is worth the initial cost.
- Economists often discount future benefits to account for the opportunity cost of capital, though this practice remains controversial when applied to long-term environmental or social projects.

---

From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.