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Discount amount
One multiplication gives the money removed from the price, which is the figure a tag advertises as the saving.
The Formula
saving = original x rate
One multiplication gives the money removed from the price, which is the figure a tag advertises as the saving.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| original | Pre-tax price the discount is taken from | currency | The same base used for the sale price, 120 here. |
| rate | Discount rate as a decimal | dimensionless | 0.25 for a 25 per cent discount. |
| saving | Money removed from the price | currency | 120 x 0.25 = 30.0 in the worked example. |
What Each Symbol Means
originalcurrency
Pre-tax price the discount is taken from
The same base used for the sale price, 120 here.
ratedimensionless
Discount rate as a decimal
0.25 for a 25 per cent discount.
savingcurrency
Money removed from the price
120 x 0.25 = 30.0 in the worked example.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate a discount page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate A Discount, filed under Everyday Life. Every number the guide produces comes from substituting into this one line.