Discount Calculator

Discount Calculator

Sellers often provide discounts to attract new customers or to retain existing customers. As a vigilant customer, you must remain aware of how much discount is being offered to you. Take note of the percentage discount and if it was correctly applied.

You should learn how to manually calculate discounts or make use of an online calculator. A discount calculator can be a helpful tool in finding the savings, the selling price, and the original price of your transaction.

What is a discount?

When a seller offers a product to you at a price lower than its original price, the deduction made from the original price is called a discount. It is used as a promotional technique. If you are a regular customer, sellers offer discounts to retain your loyalty. Sometimes vendors offer quantity discounts for those who place bulk orders.

A discount can be given as an absolute amount or as a percentage of the original cost. It is usually calculated using a discount calculation formula, but one can use a percentage discount calculator for faster results.

What is a discount calculator?

A discount calculator is a tool developed to assist in calculating discounts. This tool can compute the discount amount, the discount percentage, and even the original and sales price. With the discount calculation formula you will avoid the hassle of making manual calculations.

List price, sale price, and discount (percentage or absolute) are the 3 variables of discount calculation., While using the discount calculator, you need to provide any two variables to find the third one. Being an automated tool, it provides the results within a few seconds.

How do discount calculators work?

A simple discount calculator is based on the standard mathematical formula used for calculating discounts. It computes the amount of discount based on the sale price and the list price.

In case taxes are included in the selling price and you want to find the percentage discount, you can use a discount calculator with tax. In India, an individual needs to use a discount calculator with GST to consider the tax included.

Now let us understand how to calculate discounts using a formula.

The formula for the discount calculator

A discount can be calculated as a percentage or as an absolute amount. A percentage calculator uses the below simple formula to compute the discount percentage:

Discount = (List price - Sale price)/ List price * 100

The list price is the original price of the article and the sale price is the amount paid for it.

Example:

The list price of a pair of jeans was ₹1500 but they were sold for ₹900 during a sale. Let's understand how to calculate a percentage discount for the jeans:

Discount (%)= (₹1500-900)/900*100

= 40%

The jeans were sold at a 40% discount on their original price.

This calculation can be done within a few seconds using a percentage discount calculator.

How to use the discount calculator?

Shriram Finance has designed an easy-to-use discount calculator. Follow the three steps given below for easier and faster calculations:

Step 1: Click on 'Calculate' to see the drop-down list of the possible results. Select the list price/discount/sale price from the list.

Step 2: To calculate the discount, enter the list price and the sale price in the blank columns of the calculator. Similarly, to get the list price, provide the values for the sale price and discount %. You will need to give the discount % and list price for calculating the sale price.

Step 3: Click on 'Submit'. You will get the results within seconds.

Benefits of Shriram Finance discount calculator

The discount calculator India from Shriram Finance can be beneficial in many ways. We present below a brief understanding of the key benefits:

Quick results

A mathematical formula can be used to calculate all types of discounts, however, this can take some time. You can do it hassle-free and quickly by using a discount calculator to get accurate results.

Accuracy

If you use the discount calculation formula, a potential risk of error cannot be denied completely. However, accuracy is assured by using a calculator. However, you must ensure that you provide the right numbers in their designated columns on the discount calculator.

Free to use

Shriram Finance has created a discount calculator that allows you to use it without bearing any cost. Additionally, you can use it as many times as you require to compute discount-related details. Students can also use it as a student discount calculator and get assistance in their studies.

Helps to select the best deals

A bulk discount calculator can help you especially if you buy things in bulk and are looking to secure the best deals. The calculations will help you to negotiate a better price with your vendors. You will also benefit by comparing multiple prices and selecting the best one.

How to calculate discounted prices and savings?

Discounted prices and savings can be calculated manually or using the discount calculator in rupees. You can compute discounted prices manually by deducting the discount from the list price.

The mathematical formula for computing discount is easy and you can easily learn how to calculate discount percentage formula. However, this method can be time-consuming and prone to errors. Excel can also be used to calculate discount percentages by using the formulae. Alternatively, you can simply use a discount calculator in rupees to get quick answers.

Discount types

There are various types of discounts. We will describe below the three major categories that are most commonly used:

Trade discount

The trade discount is deducted from the list price when the selling price is fixed for an item. It may be expressed either as a percentage of the list price or as an amount. Trade discount is not recorded separately while doing the accounting. The transaction is directly recorded at the selling price after deducting the trade discount.

Quantity discount

A quantity discount is offered when a buyer purchases a specific number of products from the seller. You will receive this discount as an incentive to give more business to the seller if you place orders in bulk. It is recorded separately while accounting. A bulk discount calculator is used to calculate quantity discounts.

Cash discount

The seller offers a cash discount at the time of payment. It is given because the buyer makes the payment within a specified period after the sale. It is recorded separately in the books of accounts.

Different kinds of discounts

Apart from the three major types mentioned above, there are several other types of discounts that you will come across. For example, a company may offer a 'buy 1 get 1 free' discount, where the buyer can purchase two products for the price of one. Here are some other commonly found examples of discounts:

• Stock clearance discount
• Free shipping discount
• Seasonal discount
• Referral discount
• E-mail subscription discount
• Buy 1 get 1 free discount

Example of discount calculations

As a user of online calculators, you must know how to calculate percentage discounts manually. Refer to the sample calculations given below if you wish to know how to calculate discounts. You can also practice with more similar examples and check your answers using a percentage calculator.

Example 1: The list price of a necklace is ₹1,000 and it was sold for ₹700. Let us calculate the discount percentage by using the formula:

Discount (%) = (List price - Sale price)/ List price * 100

= (1000-700)/1000 * 100

= 30%

The necklace was sold for a 30% discount.

Example 2: A pen was sold at ₹100 after giving a 10% discount. Here is how to calculate a 10% discount. First, we will find the list price of the pen.

Discount (%) = (List price - Sale price)/ List price * 100

10 = (List price-₹100)/List price * 100

List price = ₹111

Conclusion

Using an online discount calculator is an easy and quick way to find out how much you have saved on a transaction. Shriram Finance has made the tool available to you free of cost, and you can use it without any restrictions on the number of usages. It is much easier to use this tool than manually computing the discounts by using formulae or even Excel.