What is the syntax for PRICEDISC in Excel?

The syntax for PRICEDISC is: =PRICEDISC(settlement, maturity, discount, redemption, [basis])

What are common errors with PRICEDISC?

#NUM! if maturity <= settlement

What is PRICEDISC used for?

PRICEDISC calculates the price of a discount security (like T-bills) given its discount rate. Discount securities don't pay coupons - you buy below face value and receive face value at maturity. The difference is your return.

How do I calculate T-bill purchase price?

Use =PRICEDISC(settlement, maturity, discount_rate, 100). For a 90-day T-bill at 5% discount: =PRICEDISC(today, today+90, 0.05, 100) ≈ $98.75. You pay $98.75 and receive $100 at maturity.

Why is the price less than face value?

Discount securities are sold below face value - that's how you earn return. Price = Face × (1 - discount_rate × days/360). The discount rate determines how much below face value you pay. Higher discount rate = lower price = higher return.

Financial

PRICEDISC Function in Excel

Q: What is the PRICEDISC function in Excel?

Returns the price per $100 face value of a discounted security.

Q: What are common errors with PRICEDISC?

#NUM! if maturity <= settlement

Q: What is PRICEDISC used for?

PRICEDISC calculates the price of a discount security (like T-bills) given its discount rate. Discount securities don't pay coupons - you buy below face value and receive face value at maturity. The difference is your return.

Q: How do I calculate T-bill purchase price?

Use =PRICEDISC(settlement, maturity, discount_rate, 100). For a 90-day T-bill at 5% discount: =PRICEDISC(today, today+90, 0.05, 100) ≈ $98.75. You pay $98.75 and receive $100 at maturity.

Q: Why is the price less than face value?

Discount securities are sold below face value - that's how you earn return. Price = Face × (1 - discount_rate × days/360). The discount rate determines how much below face value you pay. Higher discount rate = lower price = higher return.

Returns the price per $100 face value of a discounted security.

Syntax

=PRICEDISC(settlement, maturity, discount, redemption, [basis])

Arguments

settlement (required): Settlement date
maturity (required): Maturity date
discount (required): Discount rate
redemption (required): Redemption value per $100
basis (optional): Day count basis

Examples

=PRICEDISC("2/16/2024", "3/1/2024", 0.0525, 100) - Discounted price - Result: 99.81

PRICEDISC modeling tips

Align rate and period units (annual rate ÷ 12 for monthly models).
Use consistent cash-flow signs (outflows negative, inflows positive).
Hub: [Financial functions guide](/guides/excel-financial-functions-guide/).

Common errors

#NUM! if maturity <= settlement

Use cases

T-bill pricing
Commercial paper
Discount securities

Frequently asked questions

What is PRICEDISC used for? PRICEDISC calculates the price of a discount security (like T-bills) given its discount rate. Discount securities don't pay coupons - you buy below face value and receive face value at maturity. The difference is your return.
How do I calculate T-bill purchase price? Use =PRICEDISC(settlement, maturity, discount_rate, 100). For a 90-day T-bill at 5% discount: =PRICEDISC(today, today+90, 0.05, 100) ≈ $98.75. You pay $98.75 and receive $100 at maturity.
Why is the price less than face value? Discount securities are sold below face value - that's how you earn return. Price = Face × (1 - discount_rate × days/360). The discount rate determines how much below face value you pay. Higher discount rate = lower price = higher return.

Editorial review

Reviewed by Excel.Directory Editorial Team. Updated May 2026.