The discount formula helps you calculate how much money is taken off an original price and what the final sale price will be. A discount calculator uses the original price and discount percentage to find the discount amount and the price after discount.
Use the calculator to check your own numbers, then read the guide for formulas, examples, and common mistakes.
What Is a Discount?
A discount is a reduction from the original price of a product or service. It is usually shown as a percentage, such as 10% off, 20% off, or 50% off.
The discount amount is the money removed from the original price. The sale price is the amount left after the discount is applied.
For example, if an item costs 100 and has a 20% discount, the discount amount is 20 and the sale price is 80.
Discount Formula
The basic discount formula is: discount amount = original price × discount percentage ÷ 100.
After finding the discount amount, calculate the sale price with this formula: sale price = original price - discount amount.
These two steps show both how much is saved and how much needs to be paid.
Sale Price Formula
The sale price formula is: sale price = original price × (1 - discount percentage ÷ 100).
This formula combines the discount and final price into one step.
For example, if the original price is 200 and the discount is 25%, the sale price is 200 × (1 - 25 ÷ 100), which equals 150.
Discount Example
Suppose a product has an original price of 80 and the discount is 15%.
First, calculate the discount amount: 80 × 15 ÷ 100 = 12.
Then subtract the discount amount from the original price: 80 - 12 = 68. The sale price is 68.
How to Calculate 10% Off
To calculate 10% off, multiply the original price by 10 and divide by 100.
If the original price is 50, the discount amount is 5. The sale price is 45.
A 10% discount is also easy to estimate mentally because it is one tenth of the original price.
How to Calculate 20% Off
To calculate 20% off, multiply the original price by 20 and divide by 100.
If the original price is 150, the discount amount is 30. The sale price is 120.
This same process works for any percentage discount.
Discount vs Percentage Off
A discount can be shown as a money amount or as a percentage off. Percentage off tells you the rate of reduction, while discount amount tells you the actual money saved.
For example, 20% off a 50 item saves 10, while 20% off a 200 item saves 40.
For the detailed comparison, read Discount vs Percentage Off.
How Discounts Connect to Profit Margin
Discounts can make prices more attractive, but they can also reduce profit margin if costs stay the same.
Before applying a discount in a business, it can help to check whether the lower price still leaves enough margin.
For that topic, read How Discounts Affect Profit Margin.
How to Use the Discount Calculator
Use the Discount Calculator by entering the original price and discount percentage.
The calculator can show the discount amount and sale price quickly.
You can also use the Percentage Calculator when you only need to find a percentage of a number.
Conclusion
The discount formula is simple: multiply the original price by the discount percentage, then divide by 100.
After finding the discount amount, subtract it from the original price to get the sale price. This helps you see both the saving and the final amount to pay.
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FAQs
What is the discount formula?
Discount amount = original price × discount percentage ÷ 100.
How do I calculate sale price after discount?
Subtract the discount amount from the original price.
Is percentage off the same as discount amount?
No. Percentage off is the rate of reduction, while discount amount is the actual money saved.