Discount Calculation Definition, Formulae

Discount is a kind of reduction or deduction in the original price of a product.

It is mostly used in consumer transactions, where people are provided with discounts on various products such as Clothing, Footwear, Diapers, Baby Care Products, Toys, Strollers, Prams, Apparels and More.

In general, the discount is given in percentage or amount.

How Discount Calculator Works

Calculating a Discount

Final Price = Original Price - Discount Percentage

Example

Madonna wants to buy a Barbie DreamHouse toy that costs $125. The toy is on sale for 20% off. How much does the toy cost after the discount?

Final price after the discount is calculated as follows:

Final Price (after the discount) = Original Price - Discount Percentage

Final Price = $125 - 20%

Final Price = $125 - 25

Final Price = $100

Calculating a Discount Percentage

Rate of Discount = Discount % = ( Discount / Original Price ) x 100