Discount Formula
Before knowing the discount formula, let us recall what is meant by discount. The amount of reduction on the list or marked price to sell the product at a lower price is called a discount. 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.
What is Discount Formula?
By the discount definition, the discount formula is:
Discount = Listed Price  Selling Price
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
Using this, the formula for discount rate/percentage is:
Discount Rate = Discount / Listed Price × 100
If we know the discount and the listed price we can calculate the discount rate using the formula:
Discount Rate = Discount / Listed Price × 100

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 list price is $10.
Solution:
To find: The discount received.
The listed price = $10.
The selling price = $7.
Using the discount formula,
Discount = Listed Price  Selling Price
Discount = 10  7 = 3
Answer: Discount = $3.
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Example 2: Daniel paid $20 for a Tshirt in a sale, while the price tag was $25. Find discount rate using the discount formula.
Solution:
To find: Discount rate.
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%
Answer: Discount Rate = 20%.