Financial
DISC Function in Excel
Returns the discount rate for a security.
Syntax
- =DISC(settlement, maturity, pr, redemption, [basis])
Arguments
- settlement (required): Settlement date
- maturity (required): Maturity date
- pr (required): Price per $100 face value
- redemption (required): Redemption value per $100
- basis (optional): Day count basis
Examples
- =DISC("1/1/2024", "6/1/2024", 97.5, 100) - Discount rate - Result: Rate
Excel DISC function documentation
- DISC returns the discount rate for a security priced below redemption value.
- Syntax: =DISC(settlement, maturity, pr, redemption, [basis]).
- Use DISC for money market and discount instrument analysis where yield is quoted as discount rate.
- Related valuation references: [PRICE](/functions/price/), [YIELD](/functions/yield/), [PV](/functions/pv/), [Financial functions](/categories/financial/).
DISC arguments explained
- settlement and maturity define holding period in date serial terms.
- pr is price per $100 face value and redemption is amount paid at maturity.
- basis sets day-count method and affects output rate.
- Settlement must be before maturity to avoid errors.
Step-by-step: discount instrument screening
- Step 1 — Enter instrument terms and market quote in a structured row.
- Step 2 — Calculate =DISC(settlement,maturity,pr,redemption,basis).
- Step 3 — Compare resulting discount rate across alternatives.
- Step 4 — Convert or benchmark against investment policy thresholds.
- Step 5 — Reconcile with yield-style views when communicating results to stakeholders.
DISC vs YIELD
- DISC focuses on discount-rate quoting convention.
- YIELD reports annual return perspective for coupon-bearing or priced instruments.
- Both can differ numerically for the same security due to definition differences.
- Always specify which rate convention your team is using.
Worked examples to copy
- Basic discount rate: =DISC(DATE(2026,7,1),DATE(2026,12,31),98.2,100,0).
- Actual/360 basis example: =DISC(settle,mat,price,100,2).
- Sensitivity: lower price generally increases computed discount rate.
- Compare to purchase policy: flag if DISC exceeds minimum target.
People also ask
- Why does DISC return #NUM? — Check date order and positive price/redemption values.
- Is DISC the same as coupon yield? — No, discount conventions differ from coupon yield.
- When should I use PRICE instead? — Use PRICE for coupon-paying bond valuation.
- How to integrate with portfolio cash-flow analytics? — Link security returns to [NPV](/functions/npv/) decision models.
Common errors
- #NUM! if maturity <= settlement
Use cases
- T-bill analysis
- Discount securities
- Money market
Frequently asked questions
- What is DISC used for? DISC calculates the discount rate for a security sold below face value. Treasury bills and commercial paper are sold at a discount - you pay less than face value and receive face value at maturity. DISC calculates the annualized discount rate.
- How is discount rate different from yield? Discount rate is based on face value; yield is based on purchase price. A T-bill at $98 with $100 face value: discount rate = 2/100 = 2%, but yield = 2/98 = 2.04%. Yield is always higher than discount rate for the same security.
- How do I compare T-bill discount rates to bond yields? Use YIELDDISC or TBILLEQ to convert discount rates to bond-equivalent yields for comparison. A 5% discount rate doesn't equal a 5% bond yield. TBILLEQ converts T-bill discount rates to comparable bond yields.
Editorial review
- Reviewed by Excel.Directory Editorial Team. Updated May 2026.
When to use DISC
- T-bill analysis — common Financial scenario for DISC.
- Discount securities — common Financial scenario for DISC.
- Money market — common Financial scenario for DISC.
DISC in the Financial category
- Browse all Financial functions at /categories/financial/ for related formulas.
- DISC syntax: =DISC(settlement, maturity, pr, redemption, [basis])
- settlement (required): Settlement date
- maturity (required): Maturity date
- pr (required): Price per $100 face value
- redemption (required): Redemption value per $100
- Confirm DISC arguments match the syntax shown above before filling down.
- Lock table and range references with $ when copying formulas across rows or sheets.
Formula checklist before you copy down
- Confirm DISC arguments match the syntax shown above before filling down.
- Lock table and range references with $ when copying formulas across rows or sheets.
- If results look wrong, check for text stored as numbers and invisible spaces with TRIM.
- Spot-check three known input rows manually against expected output.
Related Excel functions
- PRICEDISC (/functions/pricedisc/): Returns the price per $100 face value of a discounted security.
- INTRATE (/functions/intrate/): Returns the interest rate for a fully invested security.
- YIELDDISC (/functions/yielddisc/): Returns the annual yield for a discounted security.
Errors to watch for
- #NUM! if maturity <= settlement — review causes on linked error pages in the directory.
Copy-paste audit workflow
- Enter DISC on three test rows with known expected output documented on a QA tab.
- Fill down only after absolute references are locked on lookup tables and rate tables.
- Compare against manual calculation or a calculator for financial and statistical functions.
- Search this directory for comparison guides when choosing between similar functions in the same category.
DISC worked examples to copy
- =DISC("1/1/2024", "6/1/2024", 97.5, 100) — Discount rate. Expected result: Rate.
DISC reference summary for crawlers and offline review
- DISC belongs to the Financial category in Excel. Returns the discount rate for a security.
- Full syntax: =DISC(settlement, maturity, pr, redemption, [basis]). Open /functions/disc/ for parameters, FAQs, and related pages.
- Common mistakes: #NUM! if maturity <= settlement
- Pair this function with comparison guides when another Excel formula might fit the same task better.
- Review fix-excel-formula-errors when unexpected errors appear after upgrading Excel or sharing across locales.