Discount Calculator

Use this calculator to easily calculate the final price after applying a percentage discount.

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How to calculate discount?

A discount is a reduction of the basic price of a good or a service. It can occur on any stage in the process of production or sale - suppliers can put a discount on material prices, or retailers can put a bright red tag that says 15% OFF! on a piece of clothing.

Discounts are often made to prompt sales of outdated stock, reward customers, attract attention or increase profits in the short term.

Oftentimes, we as customers fall to the trap of impulse buying tempted by a discount percent. However, more often than not we lose money, rather than save when we indulge in shopping by buying unnecessary goods prompted by the promise of a lower price.

Have you ever wondered how much a discount is actually worth? Maybe you have a few deals in mind, or have a percent off coupon in hand and want to know exactly what that discount percent equals in dollars. The easiest way to learn is to use this discount calculator, but if you want to do the calculation by hand, use the formula:

Discounted price = Original price - Discount,

where the discount is equal to the product of the original price and the discount rate. Therefore, the final equation is as follows:

Discounted price = Original price - Original price x Discount rate.

There are different types of discounts that you may come across. Some are seasonal - often when seasons change big clothing stores announce 50+ % discounts. Others are related to a specific type of payment - many retailers prefer to be paid in cash, rather than with a bank card in order to avoid transaction fees and receive the money immediately. [1]

Specific social groups are given discounts based on their characteristics - these include students, military officers, the elderly, and disabled people. Most companies offer special discounts to their employees, too. [1]

Usually, these people have a specific document to testify them being of a certain status. However, documents allowing discount are not exclusive to those cases - coupons also are a form of discount. [1]

Practical Examples

Let’s look into a few situations where you may come across a discount (and might be in need of a discount calculator).

  • Say you walk into a store, and see a watch worth $300 being sold with a 15% discount. You now want to know what the new price of the watch is.

Discounted price = 300 - 300 x 15% = 300 - 300 x 0.15 = 300 - 45 = $255.

Therefore, the discount is $45, and the new sales price is $255.

  • Cinemas often offer discounts on Halloween. This year, you see an ad for a 50% discount on the second horror movie you buy a ticket for. Movie tickets in this cinema cost $10, but you are a student and use a discount of 20%. If you decide to see two horror flicks on Halloween, your discount for the first one will be 20%, as you can only use your student’s discount.

            Discounted price = 10 - 10 x 20% = 10 - 2 = $8.

However, you can buy a ticket for the second movie with a 70% discount:

            Discounted price = 10 - 10 x 70% = 10 - 7 = $3.

So, seeing both films will cost you only $11 if you take advantage of the discounts.

References

[1] Wikipedia, "Discounts and allowances" [online] Available at https://en.wikipedia.org/wiki/Discounts_and_allowances.

Cite this calculator & page

If you'd like to cite this online calculator resource and information as provided on the page, you can use the following citation:
Georgiev G.Z., "Discount Calculator", [online] Available at: https://www.gigacalculator.com/calculators/discount-calculator.php URL [Accessed Date: 26 May, 2018].