Discount Formula 

The word discount means the amount of reduction on the list or marked price to sell the product at a lower price. Discount is expressed either as an amount or as a percentage. The discount formula is the difference between the listed price or marked price and the selling price. Let us see what is the discount formula along with solved examples.

Meaning of Discount Formula 

Discount is the kind of deduction in the selling price of a product when a seller proposes a discount in order to boost a sale of different products. The discount formula helps in calculating the money a buyer needs to pay to the seller. The discount formula can be calculated in percentage as well. The discount is always calculated on the listing price keeping the selling price in mind. 

• Listed price is the actual price of the product without a discount
• Selling price is the amount we pay when a buyer buys the product

Discount Formula 

By the definition of the discount, the formula is: 

Discount = Listed Price - Selling Price 

From this formula we can also find out the listed price and the selling price by using the following formulas:

Selling Price = Listed Price − Discount

Listed Price = Selling Price + Discount

Discount is usually expressed as a percentage (rate). For example, the discount on a toy car is 12% of its listed price. In that case, the discount formula is:

Discount = Listed Price × Discount Rate

Discount Rate/Percentage Formula

To find out the discount rate for a particular product while the listed price is mentioned, the formula is:

Rate of Discount = Discount% = (Discount/Listed Price) ×100

Selling Price = List Price ([100−discount%]/100)

Listed Price = Selling Price (100/100−discount%)

Examples Using Discount Formula

Example 1: Find the discount received by Bob on a chair using the discount formula, if the selling price of the chair is $7 and the listed price is $10.  

Solution:

The listed price = $10.

The selling price = $7.

Using the discount formula,

Discount = Listed Price - Selling Price

Discount = 10 - 7 = 3

Therefore, The discount received = $3

Example 2:  Daniel paid $20 for a T-shirt in a sale, while the price tag was $25. Find discount rate using the discount formula.

Solution:

List price = $25.

Selling price = $20.

Using the discount formula,

Discount = Listed Price - Selling Price

Discount = 25 - 20 = 5

Using the discount rate formula,

Discount Rate = Discount / Listed Price × 100

Discount Rate = 5 / 25 × 100 = 20%

Hence, The discount rate = 20%

Example 3: In a sports store, a pair of workout shorts is priced at $200 and is marked at 5% off. What is the rate of discount and the sale price of the shorts? 

Solution: 

Rate = 5% = 0.05

Discount = 0.05 × 200 = $10 

The sale price can be determined by using the discount formula: 

Selling Price = Listed Price − Discount

List Price = 200 

Discount = 10 

Selling Price = 200 - 10 

Selling Price = 190

Therefore, the selling price of the shorts is $190