Discount Calculator

How to Calculate Discounts

Understanding how to calculate discounts is essential for smart shopping and budgeting. This comprehensive guide will walk you through the process of determining the final price of an item after applying a discount.

Discount Formula

The discount calculation uses different formulas based on the discount type:

• Percentage Discount: $$Savings = InitialPrice \times (DiscountPercentage \div 100)$$
• Fixed Discount: $$Savings = FixedDiscountAmount$$

Then, for both types: $$FinalPrice = InitialPrice - Savings$$

Calculation Steps

1. Determine the initial price of the item
2. Identify the type of discount (percentage or fixed amount)
3. Calculate the savings using the appropriate formula
4. Subtract the savings from the initial price to get the final price

Example Calculation

Let's calculate the discount for an item with the following details:

• Initial Price: $100
• Discount: 20% off

Step 1: Calculate the Savings

$$Savings = 100 \times (20 \div 100) = 100 \times 0.20 = 20$$

Step 2: Calculate the Final Price

$$FinalPrice = 100 - 20 = 80$$

Step 3: Final Result

The final price after applying the 20% discount is $80. You save $20 on this purchase.

Visual Representation

This pie chart illustrates the breakdown of the purchase after applying the 20% discount. The larger slice represents the final price ($80), while the smaller slice shows the savings ($20).