With our discount calculator, you will be able to quickly compute the reduced price no matter what type of product is in question. It will also help you estimate the amount of money saved. Apart from that, this handy tool can make it easier for you to determine the original price or discount by performing the reverse calculation.
Who needs it? Both buyers and sellers. The discount calculator allows shoppers to negotiate the price and find the best deal. If you have a coupon, this awesome tool can help you evaluate the final price of the product after factoring in the discount. It is also helpful for sellers. With the discount calculator, they can easily compute the final price after the discount.
In this article, you can learn how to calculate the discount using our calculator and how to utilize the discount formula to find the original price. We will also talk about the things that should be considered when calculating the discount. Also, we’ll take a look at different types of discounts. So, continue scrolling for more details.
Discount & Original Sale Price: How to Calculate Them?
Don’t worry. The calculation is very simple. All you need to do is follow these 4 simple steps:
- Step 1: First, you need to know the original price of the product or service.
- Step 2: Once you’ve found the original price, you will have to factor in the discount percentage.
- Step 3: Find out how much you will save.
- Step 4: After calculating the savings, get the sale price by subtracting the amount you save from the original price. That’s it!
If you have ever calculated the percentage decrease, then this will be an easy task for you, as the discount formula is identical. Here’s the formula you need to use:
Discount = Price – (Price * Discount)
As you can see, the calculation is easy as pie. Be sure to take into account the sales tax if it’s not included in the original price. You can also use this formula:
Discounted price = Original price – (Original price * Discount / 100)
Example 1:
- Original Price: $100
- Discount: 10%
First things first, you need to calculate the savings: 10% of $100 = $10. Now that you know how much you will save, you can easily get the sale price: $100 – $10 = $90. This is the final price after the discount. So, in our example, the values are as follows:
- Original price: $100
- Final price: $90
- Discount: $10
Example 2:
Here’s another example. Now we will also consider the sales tax.
- Original Price: %1,000
- Discount: 10.00%
- Sales Tax: 0.02
We will use these formulas:
Discount = Price – (Price * Discount)
Saving = Final Price – Discount
After doing the math, we will get the following results:
- Final Price: $1,020
- Discount: $918
- You Save: %102
Things to Consider When Calculating the Discount
The discount is the difference between the price of an item and the original price. It can be calculated by taking the original price and subtracting it from the discounted price.
There are a few things that you should consider when calculating the discount. First, you need to know what discounts are available for sale items and what discounts are available for clearance items. Second, you need to understand how to calculate a sale discount. Third, you need to know how to calculate a clearance discount. Fourth, you may want to know about calculating a coupon or coupon code discount as well as any other discounts that might be applicable in your specific situation.
When calculating the discount, it is important to consider the following:
- The original price of the product
- Your objectives
- The percentage of discount that is being offered
- Type of the product
- The number of items in stock, etc.
FAQs
What Are the Most Common Types of Discounts?
While there is a wide range of discounts available, the following three are most commonly used today:
- Promotional discounts – These discounts are often used in sale promotion strategies. Promotional discounts are a great way to increase sales. They can be used for a variety of occasions, such as the launch of a new product, seasonal offers, or specific periods of time. A promotional discount can be applied in different ways. The most common way is to offer the product at an attractive price for a limited period of time. This is often done by reducing the price by 10-20% or more. Another popular offer is: “Buy one, get one free!”
- Trade discounts – Suppliers provide these discounts to distributors, allowing them to change their prices to sell every item quickly. Likewise, trade discounts are a way for companies to encourage other companies to buy their products. They also help the company get more money for their products.
- Quantity discounts – In this case, the discounts are received based on how many units people buy. Quantity discounts are a popular way to offer discounts to customers. It is a good strategy for companies because it allows them to lower their prices and attract more customers. When a company offers quantity discounts, they will usually have an upper limit on the number of items that can be bought before the discount is applied.
What Is Fictitious Pricing or Fake Discount?
Fictitious pricing (also known as fake discounts) represents a disingenuous practice used by some retailers to attract customers and to lure them into buying products. This marketing technique usually involves creating a false sense of urgency, scarcity, or exclusivity. The pre-sale prices of items are significantly inflated so that the post-sale prices are actually the real market price.
The purpose of fake discounts is to create the illusion that the product being sold is limited in quantity or supply and that it will not be available for long. This creates a sense of urgency in the potential customer and compels them to buy the product right away.
Common forms of fake discounts are coupons given out as freebies with purchase. The customer gets something they don’t need in order to get a discount on what they do want.