We all are eager about availing discounts, but we barely know how we get these discounts. There is a proper way to calculate discount and that we do by using a discount formula. The discount rate formula can either be extracted by subtracting the selling price of the product from its marked price or by multiplying the discount rate offered and the marked price of the product. In terms of Mathematics, the formula for discount is represented as below, Show
Discount = Marked Price – Selling Price OR Discount Percentage Formula = Marked Price × Discount Rate Other basis Discount formula are as below:- Discount = List Price - Selling Price Therefore Selling Price = List Price - Discount List Price = Selling Price + Discount Definition of Discount with Simple Discount Rate ExampleThe term “discount” refers to the pricing system in which the price of a commodity (goods or services) is lower than its marked price listed price. It is simply to say, 'discount' is a percentage of the listed price. A discount is a kind of price deduction in products that is noticed in consumer transactions, where the buyers have proposed a percentage of rebates on various products in order to boost sales. This rebate offered by the seller to buyer is known as a discount. The discount is always calculated on the listed price while considering the selling price. 'Listed price' is the usual price of a commodity not inclusive of any discount. 'Selling price' is the amount we actually pay to acquire the commodity when we buy. Rate of DiscountA discount has been offered when the price of an item is reduced and sold. The term "discount percentage" or "discount rate" refers to the price reduction represented as a percentage. The discount rate is calculated using the following formula: Discount (percentage) = (List Price - Selling Price)/ List Price x 100 Discount % = (Discount/List Price) times; 100 SellingPrice = ListPrice−Discount ListPrice = SellingPrice+Discount Rate of Discount=Discount%= Discount/ListPrice×100 ListPrice = SellingPrice (100/100−discount%) Successive DiscountsIf two or more discounts are offered one after the other then such discounts are called the successive discounts or we also call them discounts in series. That said; assume a discount of 15 % is provided on an item. Then on the reduced price of the product, another discount of 12% is given. In such a case, we say that successive discounts of 15% and 12% are given. For example, find a single discount equivalent to two successive discounts of 15% and 12% on an article. Solution: Let the listed price of an article be Rs 100. Then, first discount on it = 15% Price after the 1st discount = Rs (100 - 15) = Rs.85 2nd discount on the updated price i.e. = 12% of Rs.85 = Rs \[\frac{12}{100}\]\[\times\] 85 = Rs 10.2 Thus, Price after 2nd discount = Rs (85 – 10.2) = Rs. 74.8 Net selling price = 74.8 Single discount equivalent to offered successive discounts = (100 – 74.80) % = 25.2%. There is a Thing Called Fake DiscountsYes, there also exist Fake discounts, which we also sometimes refer to as fictitious pricing. It is actually a deceitful practice that some retailers involve in, wherein the presumed 'pre-sale price' of an article is immoderately increased, or the 'post-sale price' of an article is actually its market price. This is done basically to trick the consumers into thinking they are getting a discount, making them more likely to buy an article. Example1 In an apparel store, a sweatshirt that sells for Rs1500 is marked "10% off." Find out the rate of discount? What is the sale price of the sweatshirt? Solution1 Assessment: Considering that the apparel store often sells goods for a discounted price. Essentially, a seller will discount a product by a percent of the original price. In this problem, a product that originally costs Rs1500 is being discounted by 10%. So "10% off" signifies the rate of discount. To solve this problem, we require following a procedure. Procedure The rate is generally given as a percent. To calculate the discount, just multiply the rate by the original price. To compute the sale price, deduct the discount from the original price. Now that we have a procedure in place, we can simply solve the above problem Solution: Given that the rate is 10%. The discount is: 0.10 x Rs1500 = Rs150 Now, the sale price is reckoned as follows: Original price = Rs1500 Discount - 150 Thus the sale price = Rs1350 Example2 A dealer purchased a microwave oven for Rs10000. He offered a discount of 20% on its listed price and still gains 10%. Find the listed price of the microwave oven. This discount calculator allows you to find the reduced price of a product and the amount of money you save. You can also use it for the reverse and calculate the size of the discount or the original price. As a shopper, you it also functions as a sale price calculator to help you negotiate the price. Got a coupon? Find out what the final price will be after you factor in that 15% off discount that you have. These are just a few of the situations this calculator will help you with. If you are on the other side of these transactions, that is you are a sales person, you might want find out what your sale price will be (our profit margin with discount or markdown calculator may also be handy). Read on to find out how to calculate discount and what the discount formula is. How to calculate discount and sale price?Just follow these few simple steps:
Discount formulaThe formula for discount is exactly the same as the percentage decrease formula:
Other considerationsDepending on your needs, our sale price calculator goes well with our double and triple discount calculators. The commission calculator works the other way around - it determines the salesman's bonus for selling a product. Finally, the percent off calculator does... the same thing, but some people use different wording and are more likely to find it this way. FAQWhat are the types of discount?There are three most common types of discounts:
How do I calculate discount percentage?To calculate the percentage discount between two prices, follow these steps:
What are fake discounts?Fake discounts, or fictitious pricing, is a disingenuous practice that some retailers take part in, where the supposed 'pre-sale price' of an item is drastically inflated, or the 'post-sale price' of an item is actually its market price. The effect of this is to deceive the consumer into believing they are getting a bargain, making them more likely to purchase an item. How do I calculate a 10% discount?
How do I take 20 % off a price?
How do I calculate 30 percent off?
Why do clearance sales happen?Fashion is seasonal. Nobody is going to buy a light summer shirt in the middle of winter. To keep all of this unsold stock from clogging up their warehouses, shops will very often choose to sell their products at a highly discounted rate at the end of the season to make room for a new batch of seasonal stock. How do I calculate a discount rate in Excel?While it's easier to use the Omni Discount Calculator, here are the steps to calculate discount rate in Excel:
How do I find the original price?To calculate the original price of an object when you only have its post-sale price and the percentage discount, follow these steps:
What is percentage discount?Percentage discount is a discount that is given to a product or service that is given as an amount per hundred. For example, a percentage discount of 20% would mean that an item that originally cost $100 would now cost $80. This is common with promotional and seasonal sales, as a way of encouraging consumers to buy an item at a reduced cost. |
