Discounts have forever been one of the key drivers of sales in the retail industry. As humans, we tend to flock towards sales promotions and price reductions. Hence, it becomes essential to know how to calculate the money you’ll save when given a discount.
Our calculator lets you do just that, in two different scenarios. You can pick between percentage discounts and fixed amount discounts. In both these cases, you’ll know how much discount you’re getting and what your final price is.
If you want to calculate how much is sales tax on your purchase, check out our sales tax calculator.
How To Calculate Final Price When Percentage Discount Is Given
This calculator offers two ways of calculating discounted prices. Firstly, you can calculate the final price and savings for a percentage discount. The other option you have is to calculate the final price and savings for a discount of a fixed amount.
When a percentage discount is given, you will first need to divide that percentage by 100. Next, multiply this value with the original price. What you will end up with are the savings you will gain on the item. Lastly, subtract the savings from the original price. This step shows you how much of your hard-earned money you’ll have to part with.
For example, Alice is looking to purchase a smartphone that costs her $1000. The vendor advertises a discount of 10% on the listed price of the phone. Alice needs to follow the steps above to calculate her final price and her savings. If she divides 10 by 100, it yields 0.1, which is then multiplied with the listed price, to yield $100. This amount is the savings on this purchase. To calculate her final price, all she needs to do is subtract $100 from the list price of $1000, which gives $900. This discounted price is what she will pay for the smartphone.
How To Calculate Final Price When Fixed Discount Is Given
In this section, we’ll show how to use our calculator in cases with a fixed discount. The calculator churns out the final price and the percentage discount you’ll receive on the transaction.
The math behind this method is very similar to the previous one. Calculating the final price is a total breeze. Just subtract the fixed discount value from the original value to get the discounted price. Calculating the discount percentage first involves dividing the fixed discount value by the original price. Next, multiply the result with 100 to get the final discount percentage.
Let us consider the same example of Alice and her quest to buy a smartphone of $1000. This time, however, the vendor is advertising a fixed discount of $50. Using the above steps, she can determine her final price he easily by subtracting, which yields $950. To get the discount percentage, she has to divide $50 by the original price of $1000, and then multiply by 100. The discount is 5% on the purchase.
Conclusion
As customers, we are always on the lookout to get the best value for our money. In such situations, discounts can be the difference between buying something or leaving it behind. Hence, knowing how much you stand to gain in a purchase is essential. Our calculator aims to simplify this process and worry about the math, while you hunt for the best deals.
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