1. What is the Discount Formula?

The discount formula calculates the final price after applying a percentage discount to the original price. It's commonly used in retail, finance, and business transactions to determine sale prices.

2. How Does the Calculator Work?

The calculator uses the discount formula:

Where:

• Original Price — The initial price before discount (in US dollars)
• Discount Rate — The percentage discount expressed as a decimal (e.g., 0.20 for 20%)
• Discounted Price — The final price after applying the discount

Explanation: The formula subtracts the discount amount from the original price to give the reduced price.

3. Importance of Discount Calculation

Details: Accurate discount calculation is essential for businesses to set profitable sale prices, for consumers to understand savings, and for financial planning.

4. Using the Calculator

Tips: Enter the original price in US dollars and the discount rate as a decimal (e.g., 0.15 for 15%). Both values must be positive numbers, with discount rate between 0 and 1.

5. Frequently Asked Questions (FAQ)

Q1: How do I convert a percentage discount to decimal?
A: Divide the percentage by 100. For example, 25% becomes 0.25.

Q2: Can I calculate the discount amount instead of final price?
A: Yes, discount amount = Original Price × Discount Rate. Then subtract this from original price.

Q3: What if I have multiple discounts?
A: Apply them sequentially or calculate a single equivalent discount rate first.

Q4: Does this work for currency other than US dollars?
A: Yes, the formula works for any currency as long as you're consistent.

Q5: How do I calculate the original price if I know the discounted price?
A: Original Price = Discounted Price / (1 - Discount Rate)