Formula
\text{Discount} = \text{Original Price} \times \frac{\text{Discount Rate}}{100}Used to calculate:
The amount by which an original price is reduced when a percentage discount is applied.
—
What Is the Discount Formula?
The discount formula calculates the amount subtracted from an original price when a percentage discount is applied. The discount amount can then be subtracted from the original price to determine the final sale price.
—
Formula and Variables
\text{Discount} = P \times \frac{d}{100}| Symbol | Meaning | Unit |
Original price | Currency | |
| Discount rate expressed as a percentage | Percent (%) | |
| Discount | Amount deducted from the original price | Currency |
—
How to Use the Formula
Identify the original price and the discount rate. Divide the percentage discount rate by 100 to convert it to decimal form, then multiply it by the original price. The result is the amount of the discount, not the final sale price.
—
When Is This Formula Used?
The discount formula is used when a price or monetary amount is reduced by a specified percentage.
Common uses:
– Calculating discounts on retail prices
– Determining the amount saved during a sale
– Calculating percentage-based price reductions
—
Important Notes
– The formula calculates the discount amount rather than the final price after the discount.
– In the form shown above, d is expressed as a percentage; if the discount rate is already expressed as a decimal, division by 100 is not needed.
– The discount amount has the same currency unit as the original price.
– A common point of confusion is treating the discount amount as the sale price. The discount must be subtracted from the original price to find the sale price.
—
Alternate Forms
Alternate form:
\text{Discount} = PrAlternate form:
\text{Sale Price} = P\left(1 - \frac{d}{100}\right)Alternate form:
d = \frac{\text{Discount}}{P} \times 100—
Related Formulas