How to Calculate a Discount Amount

Discounts are sometimes known as sales.

Sometimes a company will sell a product at a discount. If the company sells the product at a discount to a consumer, generally it will be as a percentage off the original price. If the company sells the product at a discount to another company, the discount terms might look like "2/10" or some other variation. This means the company gets a 2 percent discount if it pays in 10 days. Calculate discounts before buying to find out the savings.

Instructions

1. Determine the discount percentage. For example, a consumer gets a 20 percent discount on his purchase of widgets.

2. Determine the original cost before the discount of the product. For example, the consumer would normally pay $125 for the widget without the discount.

3. Multiply the original price of the product by the discount percentage. In our example, $125 times 0.2 equals a $25 discount.

4. Subtract the discount from the original price of the product to determine the discount price. In our example, $125 minus $25 equals $100.

References

• AAA Math: Discount Sale Price