from a handpicked tutor in LIVE 1-to-1 classes

# 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

## FAQs on Discount Formula

### What is Discount Formula?

The discount formula is used to determine the amount of discount acquired for a buyer to buy that particular product. A seller uses discounts to make sure the products are sold and in a quick manner. The discount formula can be calculated when the listed price i.e. the actual price of the product is mentioned along with the selling price that the buyer is buying the product for. The discount formula also uses percentages, discounts are usually showcased in rates or percentages.

### What is the Formula to Calculate the Discount of a Product?

When we know the listing price and the selling price of a product, we can determine the discount by using the discount formula, which is as follows:

Discount = Listing Price - Selling Price

### What is the Formula if the Discount is in Percentage/Rate?

Discounts are usually seen in percentages or rates as well. For example, The discount on a dress is 10% of its listed price. Hence, the formulas to calculate the discount is:

Discount = Listed Price × Discount Rate

Rate of Discount = Discount% =Discount/Listed Price ×100 (when the listed price is mentioned)

### What is the Discount Received on a Pair of Shoes with the Selling Price at $2500 and Listed Price at $4000?

Given, Selling price = $2500 and Listed Price = $4000

Using the Discount Formula,

Discount formula = Listed Price - Selling Price

Discount = 4000 - 2500

Discount = 1500

Therefore, the discount received = $1500

visual curriculum