2019 OMB Discount Rates

OMB discount rates depend on the purpose of the analysis and the length of the study period.

For cost-effectiveness, lease/purchase, internal government investment, and asset sales analyses, the discount rates are based on Treasury notes and bonds with varying maturities and differ depending on the length of the study period.

For 2019 these discount rates are as follows:

Real discount rate (excluding the rate of inflation):
3-year: 1.3 %
5-year: 1.3 %
7-year: 1.3 %
10-year: 1.4 %
20-year: 1.5 %
30-year: 1.5 %

Nominal discount rate ("market rate," including the rate of inflation):
3-year: 3.3 %
5-year: 3.3 %
7-year: 3.4 %
10-year: 3.4 %
20-year: 3.5 %
30-year: 3.6 %

For public investment and regulatory analyses the discount rate remains fixed at a real rate of 7%. In Circular A-4, published in September 2003, OMB recommends that two estimates be submitted, one calculated with a real discount rate of 7% and one calculated with a real discount rate of 3%.