The discount rate is the interest rate used to calculate net present value (NPV). It represents the time value of money. NPV can help companies determine whether a proposed project may be profitable.

The interest rate your lender gives you isn't the true cost of your mortgage. Learn how to calculate your effective interest rate, including any discount points.

The picture below shows one example using a 20-year span, a discount rate of 10%, ... The article How to Calculate Intrinsic Values of Shares in Excel originally appeared on Fool.com.

Excel and Google Sheets have three functions to calculate the internal rate of return: IRR, XIRR, and MIRR. Learn how these functions can calculate investment returns.

The discount rate is determined from the first part of the cap rate formula as the risk-free rate plus the risk premium and in the example above, would be 4.20% + 7% or 11.20%.

Excel 2013 provides the DATE and XIRR functions, which derive the final annual interest rate from a series of payments on known dates. Enter your list of payment amounts in column A.

How to Calculate How Much You Can Borrow Using Excel. ... Most interest rates are expressed as annual rates, so enter "=Interest/12" and replace "Interest" with the annual interest rate, ...

The discount rate is the interest rate used to calculate net present value (NPV). It represents the time value of money. NPV can help companies determine whether a proposed project may be profitable.