# Discount Calculator

## What is the meaning of discount?

The term discount is generally used with the term allowances & together both the terms in the form of ‘discounts & allowances’ mean that there is a reduction to the basic price of either goods or services for that matter. In addition to this, these discounts & allowances may occur anywhere in the so – called distribution channel. Such an incident will happen only when there is any sort of modification either at the manufacturer’s list price (this is generally determined by a manufacturer & is printed on a package) or at the retail price (on the other hand, this is set by a retailer as well as is attached to a product that too with the help of a sticker).

## Discount Rate Calculator

 Original Price: Rs Discount: % Discount Rate: Rs Amount Saved: Rs

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It can also be the list price, as this is quoted to a potential buyer apart from being in the written form most of the times. Furthermore, there are a number of reasons or one can say that there are several purposes for this discounting & the list is inclusive of the following aspects – (1) increase in the short – term sales (2) when rewarding valuable customers (3) to move the out – of – date stock (4) reward behaviours which specially benefit this discount issuer (5) encourage the distribution channel members if they are required to perform certain function.

However, there are those discounts as well as allowances which are nothing but forms of the sales promotion. In addition to this there are a number of discounts & allowances types. Some of these discounts & allowances types have been mentioned here as well. These are as follows – prompt payment discount / preferred payment method discount / partial payment discount / sliding scale / forward dating / seasonal discount / trade discount / bargaining / trade – in – credit / trade rate discount / cumulative quantity discount / non – cumulative quantity discount / dependence of the price on the quantity.

In addition to this, the other types of discounts are – disability discount / educational or the student discount / military discount / employee discount / young person’s discount / toddler or the child or the kid discount / senior discount / special prices are offered to the friends of a seller or for that matter some special prices offered to the local residents.

### Formulae used in a discount calculator

$$sale \, price\,=\, original \, price\, \times \, (\, 1\, -\, percent \, off\, )$$

$$amount\, saved\, =\, original\, price\, -\, sale\, price$$

$$discounted\, price\, =\, list\, price\, \times \, discount\, rate$$

$$discount \, rate\, = \, \frac {discount }{list \, price} \, \times \, 100$$

## How to use a discount calculator?

In order to make use of the discount calculator, an individual will have to first enter the price followed by the percentage. The user will have to keep it in mind that the price is of the good which is purchased while the percentage is nothing but the sales tax. When all the details have been mentioned, click on the calculate tab in order to get the result. Moreover, with this online discount calculator, one can get the final price minus the tax as well as discount.