The terms anno Domini (AD) and before Christ (BC) are used when designating years in the Gregorian and Julian calendars. The term anno Domini is Medieval Latin and means "in the year of the Lord" but is often presented using "our Lord" instead of "the Lord", taken from the full original phrase "anno Domini nostri Jesu Christi", which translates to "in the year of our Lord Jesus Christ". The form "BC" is specific to English, and equivalent abbreviations are used in other languages: the Latin form, rarely used in English, is ante Christum natum (ACN) or ante Christum (AC).

This calendar era takes as its epoch the traditionally reckoned year of the conception or birth of Jesus. Years AD are counted forward since that epoch and years BC are counted backward from the epoch. There is no year zero in this scheme; thus the year AD 1 immediately follows the year 1 BC. This dating system was devised in 525 by the Eastern Roman monk Dionysius Exiguus but was not widely used until the 9th century. Modern scholars believe that the actual date of birth of Jesus was about 5 BC.

Terminology that is viewed by some as being more neutral and inclusive of non-Christian people is to call this the Common Era (abbreviated as CE), with the preceding years referred to as Before the Common Era (BCE). Astronomical year numbering and ISO 8601 do not use words or abbreviations related to Christianity, but use the same numbers for AD years (but not for BC years since the astronomical year 0 is 1 BC).

Traditionally, English follows Latin usage by placing the "AD" abbreviation before the year number, though it is also found after the year. In contrast, "BC" is always placed after the year number (for example: 70 BC but AD 70), which preserves syntactic order. The abbreviation "AD" is also widely used after the number of a century or millennium, as in "fourth century AD" or "second millennium AD" (although conservative usage formerly rejected such expressions). Since "BC" is the English abbreviation for Before Christ, it is sometimes incorrectly concluded that AD means After Death (i.e., after the death of Jesus), which would mean that the approximately 33 years commonly associated with the life of Jesus would be included in neither the BC nor the AD time scales.

The anno Domini dating system was devised in 525 by Dionysius Exiguus to enumerate years in his Easter table. His system was to replace the Diocletian era that had been used in older Easter tables, as he did not wish to continue the memory of a tyrant who persecuted Christians. The last year of the old table, Diocletian Anno Martyrium 247, was immediately followed by the first year of his table, anno Domini 532. When Dionysius devised his table, Julian calendar years were identified by naming the consuls who held office that year—Dionysius stated that the "present year" was "the consulship of Probus Junior", which was 525 years "since the incarnation of our Lord Jesus Christ". Thus, Dionysius implied that Jesus' incarnation occurred 525 years earlier, without stating the specific year during which his birth or conception occurred. "However, nowhere in his exposition of his table does Dionysius relate his epoch to any other dating system, whether consulate, Olympiad, year of the world, or regnal year of Augustus; much less does he explain or justify the underlying date."

Bonnie J. Blackburn and Leofranc Holford-Strevens briefly present arguments for 2 BC, 1 BC, or AD 1 as the year Dionysius intended for the Nativity or incarnation. Among the sources of confusion are:

It is not known how Dionysius established the year of Jesus's birth. One theory is that Dionysius based his calculation on the Gospel of Luke, which states that Jesus was "about thirty years old" shortly after "the fifteenth year of the reign of Tiberius Caesar", and hence subtracted thirty years from that date. This method was probably the one used by ancient historians such as Tertullian, Eusebius or Epiphanius, all of whom agree that Jesus was born in 2 BC, probably following this statement of Jesus' age (i.e. subtracting thirty years from AD 29).

Another major theory asserts that Dionysius counted back 532 years from the first year of his new table, following an 532-year cycle established by the astronomical computations of Victorius of Aquitaine (the dates for Easter repeat every 532 years). Alternatively, Dionysius may have used an earlier unknown source, as the earlier Chronograph of 354 states that Jesus was born during the consulship of Caesar and Paullus (AD 1).