1. What is the Discount Formula?

The discount formula calculates the final price after applying a discount percentage to the original price. It's commonly used in retail, e-commerce, and financial calculations to determine sale prices.

2. How Does the Calculator Work?

The calculator uses the discount formula:

Where:

• \( DP \) — Discounted Price ($)
• \( OP \) — Original Price ($)
• \( D \) — Discount (decimal format, e.g., 0.2 for 20%)

Explanation: The formula subtracts the discount amount from the original price to calculate the final discounted price.

3. Importance of Discount Calculation

Details: Accurate discount calculation is essential for pricing strategies, sales promotions, inventory management, and financial planning in business operations.

4. Using the Calculator

Tips: Enter the original price in dollars and the discount as a decimal (e.g., 0.15 for 15% discount). Both values must be valid (price > 0, discount between 0-1).

5. Frequently Asked Questions (FAQ)

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

Q2: Can I calculate the discount amount instead of final price?
A: Yes, discount amount = OP × D. The discounted price is then OP minus this amount.

Q3: What's the maximum discount I can apply?
A: Discount can range from 0% (no discount) to 100% (free item), represented as 0 to 1 in decimal format.

Q4: Does this work for multiple discounts?
A: For multiple discounts, apply them sequentially or use a combined discount factor: D_combined = 1 - [(1-D1)×(1-D2)×...]

Q5: How do I calculate the original price from discounted price?
A: Original Price = Discounted Price ÷ (1 - D)