# Discount Calculator

Created by Tibor Pal, PhD candidate, Mateusz Mucha and Hanna Pamuła, PhD candidate
Reviewed by Bogna Szyk and Jack Bowater
Based on research by
Baye, M. Managerial Economics and Business Strategy (2009)See 1 more source
Jobber, D.; Lancaster, G.; Meunier-Fitzhugh K.L. Selling and Sales Management, 11th Edition (2019)
Last updated: Aug 08, 2022

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:

1. Find the original price (for example $90) 2. Get the the discount percentage (for example 20%) 3. Calculate the savings: 20% of$90 = $18 4. Subtract the savings from the original price to get the sale price: $90 - $18 =$72
5. You're all set!

## Discount formula

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

discounted_price = original_price - (original_price * discount / 100)

## Other considerations

Depending 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.

## FAQ

### What are the types of discount?

There are three most 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, so that all items can be sold.
• Promotional discounts - these are a useful sale promotion technique, these are the most common discount for consumers. You've surely seen one in the form of 20% off sale, or a buy one get one free offer.

### How do I calculate discount percentage?

To calculate the percentage discount between two prices, follow these steps:

1. Subtract the post-discount price from the pre-discount price.
2. Divide this new number by the pre-discount price.
3. Multiply the resultant number by 100.
4. Be proud of your mathematical abilities.

### 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?

1. Take the original price.
2. Divide the original price by 100 and times it by 10.
3. Alternatively, move the decimal one place to the left.
4. Minus this new number from the original one.
5. This will give you the discounted value.
6. Spend the money you've saved!

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

1. Take the original price.
2. Divide the original price by 5.
3. Alternatively, divide the original price by 100 and multiply it by 20.
4. Subtract this new number from the original one.
5. The number you calculated is the discounted value.

### How do I calculate 30 percent off?

1. Take the pre-sale price.
2. Divide the original price by 100 and multiply it by 30.
3. Take this new number away from the original one.
4. The new number is your discounted value.
5. 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 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:

1. Input the pre-sale price (for example into cell A1).
2. Input the post-sale price (for example into cell B1).
3. Subtract the post-sale price from the pre-sale price (In C1, input =A1-B1) and label it “discount amount”.
4. Divide the new number by the pre-sale price and multiply it by 100 (In D1, input =(C1/A1)*100) and label it “discount rate”.
5. Right click on the final cell and select Format Cells.
6. In the Format Cells box, 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 post-sale price and the percentage discount, follow these steps:

1. Divide the discount by 100.
2. Subtract this number from 1.
3. Divide the post-sale price by this new number.
4. Marvel at what you could have been paying!

### 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.

Tibor Pal, PhD candidate, Mateusz Mucha and Hanna Pamuła, PhD candidate
What type of discount?
% off
Original price
$Discount % Is tax included in price? yes After discount You pay$
You're saving
\$
The old version, the simple discount calculator, is also available.
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