A discount is a reduction in the original price of a product or service, often offered by sellers to attract customers or clear out inventory. The discount formula helps in calculating the reduced price or the amount saved.Discount in Mathematics is defined as the reduction in price of any service and product. Discount is offered by the business owner to easily and quickly sell their product or services. Giving discounts increases the sales of the business and helps the business retain its customer.
What Is the Formula of Discount Percentage?
There are two formulas for calculating discount percentages:
- Discount (%) = (Discount/List Price) × 100
- Discount = List Price – Selling Price
The first formula is the one to calculate the discount percentage.
There are a few other ways to calculate the discount percentage when the percentage is given:
- Rate of Discount = Discount% = (Discount/Listed Price) ×100
- Listed Price = (Selling Price × 100)/ (100−discount %)
- Discount = Listed Price × Discount Rate
- Selling Price = Listed Price [(100−discount%)/100]
Successive Discount Formula
Successive discount works in a similar way to compound interest. It means a discount on discount.
Suppose you are buying a book worth Rs.300 with a 10% discount. Now, the seller has offered another 20% discount on the new price. So, what will be the final price?
You can simply find it by repeating the formula of finding the discount percentage. Alternatively, you can use the successive discount formula:
Successive discount = X + Y – (XY)/100
Here, X denotes the first discount, and Y denotes the second discount.
Hence, considering the example stated above, we get.
Successive discount = 10 + 20 – (10X20)/100 = 28
Hence, you will get the book at a 28% discount.
Discount Formula in Profit and Loss
Sellers offer discounts on the listed price to promote products, manage competition, and increase sales. However, they don’t do it at a loss.
Here is the discount formula for profit and loss:
Discount= (Marked Price – Selling Price)
The idea is pretty simple. If a seller has bought a saree for Rs. 1000 and sold it for Rs. 1500, then he made a profit of Rs. 500. But if he has sold it for Rs. 800, then he made a loss of Rs. 200.
FAQs
What is the formula for a 25% discount?
You can calculate the value of a product with a 25% discount on it by using the formula Discount (%) = (25/List Price) × 100.
How do you calculate a 15% off?
You can calculate the value of a product with 15% off on it by using the formula Discount (%) = (15/List Price) × 100.