How Discount Math Works
Discounted Price Equation
Final Sale Price = Original Price Γ (1 β Discount Rate)
Example: $80 item at 30% off = $80 Γ 0.70 = $56.00
Savings Amount Equation
Total Saved = Original Price Γ (Discount Rate Γ· 100)
Example: $80 item at 30% off saves $80 Γ 0.30 = $24.00
Step-by-Step Discount & Sales Tax Example
Suppose you find a designer jacket with an original retail price of $150.00 on sale for 35% off with an 8% local sales tax rate:
- Calculate discount savings: $150.00 Γ (35 Γ· 100) = $52.50 saved.
- Calculate discounted subtotal: $150.00 β $52.50 = $97.50 subtotal.
- Calculate sales tax: $97.50 Γ (8 Γ· 100) = $7.80 sales tax.
- Calculate final checkout price: $97.50 + $7.80 = $105.30 total out-of-pocket.
Frequently Asked Questions
Common questions and detailed answers regarding calculations and formulas.
To calculate a discount manually: multiply the original retail price by the discount percentage divided by 100 to get the savings amount. Then subtract the savings from the original price to find the final sale price.