# How to calculate a discount

Calculating a discount is a straight forward process that involves working with percentages. Most often discounts are displayed as a % off of a normal sale price. do this in your head can be daunting especially for abstract numbers. The calculator below will help you with this and can be used in your daily shopping.

First, lets layout the formula that this calculator will use for the total discount or savings.

Discount ($) = (Normal Price * % off )

Next, lets layout the formula for the final price of your item.

Final Price ($) = Normal Price ($) – Discount ($)

In other words, the total discount in dollars, is equal to the original price – the original price times the percent off being displayed. Still not following? You can simply enter those values in the calculator below to determine your savings.

## Discount Calculator

Enter your percent off (%) and your original price to calculate the total savings and final price of any discounted item.

## Saving Calculator

Sometimes this is also referred to as a savings calculator. Your total discount is the same as the amount of money you save on an item? Why is this important?

Many companies often use discounts to draw customers to buy a certain item, but they do it in a confusing way to confuse you. For instance, a store might display an item as 50% off. Great, you’re ecstatic that what you are looking for is on sale.

Wait, you should hold on to that wallet if yours for just a bit longer and dig into the detail. A common strategy is to say it’s 50% off, but 50% off of what price? Is it 50% off the original price you would have paid yesterday, or 50% off the “retail” price. Often times it’s the “retail price”, and that’s just a way of saying an arbitrary price point they set to act like they’re selling you an item for cheap.

That’s only one of many methods that companies use to trick you into purchasing items. That’s why it’s important to understand the math behind the discount.

## Discount Vs Flat Rate

You might be asking, what if they offer a flat rate discount in dollars instead of percent and you want to figure out the equivalent percentage? Then you need to use the following formula:

Percent Off (%) = Flat Discount ($) / Original Price ($) * 100

Easy enough. Using the calculator above and that formula you can compare the % off and the discount regardless of what your store tells you to help make better purchasing decisions.