The discount formula shows how much money is taken off an original price and what remains to pay. It is useful when comparing sale prices, checking a store promotion, or estimating savings before buying. The result depends on the original price and the discount rate entered; additional taxes, delivery charges, or fees may change the final amount paid.
Discount formula
Discount amount = Original price × Discount rate ÷ 100
Sale price = Original price − Discount amount
For example, if an item costs 80 and the discount is 25%, the discount is 80 × 25 ÷ 100 = 20. The sale price before any additional charges is 80 − 20 = 60.
How to calculate a discount
- Find the original price before the discount.
- Convert the advertised percentage into a number, such as 15 for 15%.
- Multiply the original price by the percentage and divide by 100.
- Subtract the discount amount from the original price.
- Check whether tax or other fees are added separately.
Understanding the result
The discount amount is the money saved from the listed price. The sale price is the remaining price after that saving. A 100% discount reduces the price to zero, while a 0% discount leaves it unchanged. If a promotion applies only to selected items or has a spending limit, the simple formula may not represent the full offer.
Common mistakes
Do not subtract the percentage number directly from the price. A 20% discount on 50 is 10, not 20. Also check whether the advertised discount applies before tax, to each item, or to the whole basket.
Frequently asked questions
How do I find the price after a discount?
Calculate the discount amount, then subtract it from the original price.
Can I calculate the discount without finding the amount saved first?
Yes. Multiply the original price by (1 − discount rate ÷ 100) to find the price before additional charges.
Does the formula include tax?
No. Include tax separately according to the applicable pricing rules.
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