Discount Formula:
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Discount calculation determines the final price after applying a percentage reduction to the original price. It's commonly used in retail, sales, and financial transactions to show price reductions to customers.
The calculator uses the discount formula:
Where:
Explanation: The formula calculates the remaining percentage of the original price after subtracting the discount percentage.
Details: Accurate discount calculation is essential for businesses to maintain profit margins, for consumers to understand savings, and for financial planning in both personal and commercial contexts.
Tips: Enter the original price in dollars and the discount percentage (0-100). Both values must be positive numbers with discount percentage not exceeding 100%.
Q1: How do I calculate a 20% discount?
A: Multiply the original price by 0.80 (1 - 0.20). For $100 item: $100 × 0.80 = $80.
Q2: What's the difference between discount percentage and discount amount?
A: Percentage is the relative reduction (e.g., 20%), while amount is the absolute dollar value subtracted (e.g., $20 off $100).
Q3: How do I calculate the original price from discounted price?
A: Original Price = Discounted Price / (1 - Discount %). If discounted to $80 at 20% off: $80 / 0.80 = $100.
Q4: Can discounts be stacked?
A: Sequential discounts multiply (e.g., 20% then 10% isn't 30% but 1-(0.8×0.9)=28% total discount).
Q5: Why do some discounts appear different than calculated?
A: Some retailers apply discounts to pre-discount prices, exclude certain items, or round amounts differently.