Discount — Definition, Formula & Examples
A discount is a reduction from the original price of an item, usually expressed as a percentage. You subtract the discount amount from the original price to find the sale price.
A discount is a deduction applied to the marked (or list) price of a good or service, calculated as the product of the discount rate and the original price. The resulting sale price equals the original price minus the discount amount.
Key Formula
Where:
- = Original (list) price of the item
- = Discount rate expressed as a decimal (e.g., 25% = 0.25)
Worked Example
Problem: A jacket originally costs $80 and is on sale for 25% off. What is the sale price?
Find the discount amount: Multiply the original price by the discount rate.
Subtract from the original price: Take the discount amount away from the original price to get the sale price.
Answer: The sale price of the jacket is $60.
Why It Matters
Discount calculations appear constantly in everyday shopping, budgeting, and tipping scenarios. In courses like pre-algebra and consumer math, they serve as a key application of percent problems. Careers in retail, accounting, and marketing all rely on understanding how discounts affect pricing and profit margins.
Common Mistakes
Mistake: Using the discount amount as the sale price instead of subtracting it from the original price.
Correction: The discount amount (e.g., $20) is what you save, not what you pay. Always subtract it from the original price: Sale Price = $80 − $20 = $60.