Definition – What is a discount?
A discount calculates the price after a certain percentage off.
Many stores list the regular price of an item and a discount (such as 25% off).
The discount is the amount that is saved from the original price.
The discounted price is the final price after the discount is applied.
Formula – How to calculate a discount
Discount =Starting Price x (Percent Off / 100%)
Discounted Price = Starting Price – Discount
A product with an original price of $50 is selling for 25% off.
Discount = $50 x (25%/100%) = $50 x 0.25 = $12.50
Discounted Price = $50 – $12.50 = $37.50
Sources and more resources
- Wikipedia – Discounts and Allowances – A collection of many different types of discounts.