# Discount Calculator

*Managerial Economics and Business Strategy;*2009See 1 more source

*Selling and Sales Management, 11th Edition;*2019

This **discount calculator** lets you find the **reduced price of a product** and the **amount of money you save**. You can also use it in reverse and calculate the discount or the original price.

- If you enjoy bartering, this calculator can be a
**sale price calculator**to help you negotiate. - Got a coupon? Find out the
**final price**after that 15% discount code.

These are just a few of the situations this calculator will help you with. Read on to find out how to calculate discount and what the discount formula is.

💡 If you are a salesperson on the other side of these transactions, you might want to find out **what your sale price will be**. Consult our profit **margin with discount calculator** or **markdown calculator**.

## Discount formula

The formula for discount is exactly the same as the **percentage decrease formula**:

`discounted price = original price - (original price × discount / 100)`

## How to calculate discount and sale price?

Just follow these simple steps:

- Determine the original price (for example,
`$90`

). - Determine the discount percentage (for example,
`20%`

). - Calculate the savings:
`20% of $90 = $18`

. - Subtract the savings from the original price to get the sale price:
`$90 - $18 = $72`

- You've just applied the discount!

## FAQ

### What are the types of discount?

There are three common types of discounts:

**Quantity discounts**— where you receive a discount based on**the number of units you purchase**. Thank you, economies of scale!**Trade discounts**— discounts provided by a supplier to distributors. This discount allows distributors to**vary their own prices**, to ensure that all items can be sold.**Promotional discounts**— the most common discount for consumers and a useful sales promotion technique. You've probably seen them before: remember last week's 20% off sale or that "buy one get one free" offer?

### How do I calculate the discount percentage?

To calculate the percentage discount with the original price and the discounted price, follow these steps:

- Subtract the discounted price from the original price.
- Divide this new number by the original price.
- Multiply by 100.
- You've found the discount percentage! Be proud of your mathematical abilities.

### What are fake discounts?

**Fake discounts** (or fictitious pricing) is a **disingenuous marketing practice** 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 goal is to **deceive consumers** into believing they are getting a bargain, making them more likely to purchase an item.

### How do I calculate a 10% discount?

To compute a 10% discount, follow these steps:

- Take the item's price.
- Divide it by 100, then multiply it by 10. This is the amount you're saving thanks to the 10% discount.
- Subtract this amount from the original price. This is the discounted price.
- Spend the money you've saved!

### How do I take 20% off a price?

In order to take 20% off a price:

- Take the actual price.
- Divide the actual price by 100 and multiply it by 20 to calculate the savings.
- Subtract the savings from the original price.
- The number you've just calculated is the discounted value.
- Enjoy your savings!

### How do I calculate 30 percent off?

To calculate 30 percent off, you need to:

- Take the pre-sale price.
- Divide the original price by 100 and multiply it by 30.
- Subtract this new amount from the original one.
- The new amount is your discounted price.
- Laugh at how much money you're saving!

### Why do clearance sales happen?

**Fashion is seasonal**. Nobody is going to buy a light summer shirt in the middle of winter. To prevent 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:

- Input the
**pre-sale price**(for example, into cell A1). - Input the
**post-sale price**(for example, into cell B1). **Subtract**the post-sale price from the pre-sale price:

In C1, input`=A1-B1`

and label it “discount amount”.**Divide**the new amount by the pre-sale price and**multiply**it by 100:

In D1, input`=(C1/A1)*100`

and label it “discount rate”.- To view the discount as a percentage, right-click on the final cell and select
`Format Cells`

. Under`Number`

, select`Percentage`

and specify your desired number of decimal places.

### How do I find the original price?

To calculate the original price of an object when you only have its **discounted price** and the **percentage discount**, follow these steps. We'll use a discounted price of $80 and a percentage discount of 20%.

- Divide the discount percentage by
`100`

to convert it to a decimal fraction:

`20% / 100 = 0.2`

- Subtract this fraction from 1:

`1 - 0.2 = 0.8`

. - Divide the post-sale price by this new number:

`$80 / 0.8 = $100`

. - Marvel at what you could have been paying!

### What is a percentage discount?

**Percentage discount** is a **discount** applied 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 cost **$20 less** and 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**.