Discount Calculator

Understanding Discounts and How to Calculate Them

Different Types of Discounts

The term “discount” generally refers to any reduction in the standard price of a product or a service. Two of the most common types you’ll encounter are percentage-based discounts and fixed amount discounts.

Calculating the Original Price After a Discount

Sometimes you know the discounted price and the percentage that was taken off, and you want to find the original price. Here’s the formula to do just that:

Original Price=(1−Discount Percentage)Discounted Price​

Example:

Let’s say an item is on sale for $40.50 after you received a 10% discount. To find out what the original price was:

Original Price=(1−0.10)$40.50​=0.90$40.50​=$45.00

Therefore, the original price of the item was $45.00.

Percentage Off Discounts

A percentage off discount means a certain percentage, for instance, 10%, is subtracted from the original price of an item or service. Using our previous example, if something originally costs $45 and there’s a 10% discount, the final price is calculated by either subtracting 10% of $45 from $45, or by directly calculating 90% of $45:

$10\%\text{ of }\$45=0.10\times \$45=\$4.50$ $\$45-\$4.50=\$40.50$

Alternatively:

$90\%\text{ of }\$45=0.90\times \$45=\$40.50$

In this scenario, you save 10%, which amounts to $4.50.

Fixed Amount Off Discounts

A fixed amount off discount involves subtracting a specific dollar amount from the original price. For example, if a service typically costs $95 and you have a coupon for $20 off, the final price is determined by simply subtracting $20 from $95$:

$\$95-\$20=\$75$

In this case, your savings are the fixed amount of $20.

The examples above illustrate the two most common ways discounts are offered. However, you might encounter more complex discount structures, such as stackable discounts, where you might get an initial percentage off, and then another percentage off the already discounted price. If you need to perform these types of calculations, our Percent Off Calculator can help.

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