A discount is a price reduction on a product or service, typically shown as a percentage off the original price. Businesses offer discounts to attract customers, boost sales, or clear inventory. Understanding how discounts work can help you save money effectively.
Use these simple formulas to find the discount amount and final price:
Discount Amount = Original Price × (Discount Rate / 100)
Final Price = Original Price - Discount Amount
For an item priced at ₹500 with a 25% discount:
Discount Amount = ₹500 × (25 / 100) = ₹125
Final Price = ₹500 - ₹125 = ₹375
You save ₹125, paying only ₹375 after the discount.