How to Calculate Discounts with Examples

Discounts are common when shopping, both in-store and online on the platform E-commerce. In buying and selling activities in the business world, discounts are something that can benefit customers as well as business people.

From the side customer, discounts are considered profitable because they can save expenses, so that budget can be diverted for other purposes. Meanwhile, from the business side, discounts are a medium promotion effective sales to attract customers.

Therefore, knowledge about discounts is important for both customers and business people to understand. The following is an explanation regarding the definition of discount, its types, calculation formulas and examples of calculations.

What is a Discount?

The definition of discount is a reduction or discount in the price of an item and service provided by business people as producers to customers as consumers. In the business world, discounts are often applied by business people as a form of Strategy marketing.

Discounts are considered capable of influencing consumers' desire to buy discounted products. The greater the discount given, the greater the consumer's interest in buying the product. Until finally, it can increase the profit of business sales.

Not only that, discounts are also often applied by business people as a reward or appreciation of customer response. The goal is to further improve customer loyalty The.

Formula for calculating discounts by type

Generally, the discount amount is expressed as a percentage (%). In order to find out the amount of the discount from the percentage in the form of rupiah, and vice versa, there are calculations that can be known by using the calculation formula, as follows:

Single Discount Formula

A single discount is a form of price discount that is given without multilevel calculations. For example, 50% discount. To find out the amount of this discount, it can be calculated using the following formula:

• First formula:

• Second formula:

For the record, greatly calculating the price of discounted products, the discount percentage can be converted into decimal form. The trick is to multiply the discount percentage by 1/100.

Double Discount Formula

Double discount is a form of discount that is given in stages. For example, 60% + 40% discount. How to read this one discount, not by adding up the discount percentage.

The right way is to find out in advance the value of the first discount percentage. After that, the value is multiplied again by the second discount percentage. In other words, a double discount is a discount that is given twice.

To find out the amount of this discount in rupiah, it can be calculated using the following formula:

Discount Calculation Steps and Case Examples

The following are the steps for calculating discounts by type, using case examples.

Single Discount Example

It is known that business people in the culinary field give a 40% discount on their food products which cost Rp. 100.000. To find out the amount of money that consumers need to spend when buying discounted food products, it can be calculated using two ways.

• Calculation with the first formula:

Discount in Rupiah = (Discount Percentage x Product Original Price in Rupiah)

= 40% x 100.000 = 40.000

So, it is known that the discount given by business people is Rp. 40.000. Next, calculate the price of the product after the discount so that consumers know the amount of money that needs to be spent when buying the discounted food product.

Discount Product Price = Original Product Price in Rupiah – Discount in Rupiah

= 100.000 – 40.000 = 60.000

So, the amount of money that needs to be spent when buying the discounted food product is IDR 60.000.

• Calculation with the second formula:

Discount Product Price = (100% - Discount Percentage) x Original Product Price in Rupiah

= (100% - 40%) x 100.000 = (60%) x 100.000 = 60.000

So, the amount of money that needs to be spent when buying the discounted food product is IDR 60.000.

Double Discount Example

Known business people engaged in the field of fashion provide a 50% + 20% discount on its superior product, namely a jacket for Rp. 500.000. To find out the amount of money that consumers need to spend when buying the discounted jacket, it can be calculated by the following steps:

First Discount Product Price = (100% – First Discount Percentage) x Product Original Price

= (100% - 50%) x 500.000 = 50% x 500.000 = 250.000

So, it is known that the price of the product after being deducted by the first discount is Rp. 250.000. To find out the amount of money that consumers need to spend when buying a jacket with a multilevel discount, it can be continued by calculating the second discount.

Second Discounted Product Price = (100% – Second Discount Percentage) x First Discounted Product Price

= (100% - 20%) x 250.000 = 80% x 250.000 = 200.000

So, the amount of money that consumers need to spend when buying a jacket with a multilevel discount is Rp. 200.000.

This is an explanation related to the definition, types, calculation formulas to examples of discount calculations. May be useful.