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Discount Formula

Last Updated : 20 Oct, 2023
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Discount in Mathematics is defined as the reduction in price of any service and product. Discount is offered by the business owner to easily and quickly sell their product or services. Giving discount increases the sales of the business and help the business to retain its customer.

Discount is always calculated on the marked price of the object. In the sale of an object Cost Price, Selling Price, Profit, Loss, and discount are calculated. We have to study Discount Formula in Class 8. Here in this article, we will learn about, Discount Definition, Types of Discount Formula, and others in detail.


What is a Discount?

Discount is the reduction in the price of an object or service that is used to increase the sales of any business and helps to retain customers in a business. The price at which a retailer gets the object from the manufacturer is called the cost price and after factoring its transportation cost, damage, and profit the price increased by the retailer is called the Marked Price(MP) of the object. The discount is always given on the MP of the object. Discount is given by the retailer when he wants to remove its inventory faster or wants to increase its sales.

Selling price of the object is the price of the object after the discount. Discount is given represented as ‘Off’. Discount is always given as a percentage, for example, 50% Off, means indicates that the object is selling at 50% price less than its MRP. Here, 50% is the discount given on the object.

Discount Definition

Discount is the rebate given by the businessman on the product or services. That helps to increase the sales of its business, it is the amount or percentage reduced from the normal selling price or marked price of the object.

Types of Discounts

Various types of discount are offered by retailers or business man on various objects and services. The most common three types of discount are,

  • Promotional Discount
  • Trade Discount
  • Quantity Discount

Let’s learn about all these discounts here.

Promotional Discount

Promotional Discount is the discount given by the retailer or businessman to promote certain events or objects. This is the type of discount that retailers give on Holi, Diwali, Id, and other festivals. The “Flipkart: Big Billion Day”, and “Amazon: Great Indian Festival” are the promotional discount given by Flipkart and Amazon on the occasion of Navratri, Diwali, and other.

Trade Discount

Trade discount is the discount given to some specific traders because of their tie-ups. A specific manufacturer can give some special discount to a trader who is its regular customer.

Quantity Discount

Quantity discount is the discount given by the retailer on the quantity of the item purchased. We have seen some retailers giving 10% or more discount if we purchase an item worth rupees ‘x’ amount or more. For example, we have seen discount offers as, ‘Buy 2 Get 1 Free’, ‘Buy 3 Get 2 Free’, and others all these are quantity discount.

Discount Formula

Various Formula that are used to find the discount on various objects are,

  • Discount = Marked Price – Selling Price
  • Discount = List Price – Selling Price
  • Discount(%) = (Discount/Marked Price) × 100

Example: These formulas are used to find the discount on the various objects. For example, suppose a retailer gives a discount of 20% on all purchase then what is the selling price of the object if its marked price is 200 Rupees?


Marked Price (MP) = 200 Rs

Discount(D) = 20%

Selling Price(SP) = MP – D% of MP

SP = 200 – 20% of 200

SP = 200 – 20/100 × 200 200 – 40

SP = 160

The selling price of the object is 160 rupess.

Discount Rate

Discount rate is the rate of the article that is calculated after the discount. Suppose a retailer gives a 10% discount on an object then the price of the object after the discount is the selling price and the discount rate is the deduction offered by the retailer.

Discount Rate Formula

The discount rate is calculated using the formula as,

  • Discount Rate = MP – SP

In percentage discount rate is calculated as,

  • Discount(%) = (MP – SP)/MP × 100
  • Discount (%) = Discount/MP × 100

Discount Calculation

Discount on an object is calculated by following the steps added below,

Step 1: Note the Marked Price(MP), and Discount% of the object.

Step 2: Use the formula added below to find the discount as,

Discount = MP – (Discount%)/100 × MP

Step 3: Simplify the above formula to get the discount given on the object.

This can be explained using the example added below,

Example: Find the discount on the object if its MP is 400 rupees and discount% is 25%.



  • MP = 400 Rs
  • Discount% = 25%

Discount(D) = 25% of MP

D = 25/100 × 400

D = 100

The discount given on the object is 100

Succisive Discount Formula

Succisive Discount means the discount given on the discounted item. It is similar to the compound interest which is similar to interest on interest.

Successive Discount Formula

To calculate the successive discount given on any object we use the formula as, suppose a discount of x% and y% is offered on an object then successive discount formula for total discount is,

Total Discount = (x + y -xy/100)%

Two Successive Discount Formula

If two successive discount are offered on any object then we use the successive discount formula to find the total discount offered on the object. This is explained using the example added below,

Example: If a discount of 20% and 30% is offered on Jeans of rupess 2000 find the total discount offered on the jeans.



  • MP = Rs 2000
  • Discount 1(x) = 20%
  • Discount 2(y) = 30%

Total Discount = {20 + 30 – (20×30)/100}%

TD = (50 – 6)% = 44%

In terms of rupees, total discount offered on the jeans is,

TD = 44% of 2000

= 44/100 × 2000

= 880 rupees

How Discount Works? 

Discounts are given on the marked price which reduces the selling price of the object or services. It is calculated using the formula,

  • Discount(D) = Marked Price(M.P.) – Selling price(S.P.)
  • Discount Percentage = Discount/Marked Price × 100

Read More,

Examples of Discounts Formula

Example 1: Finding discount percentage and discount. A toy had a M.P of ₹1000 and was sold to Shyam after a discount at ₹800. Find how much less the toy cost to Shyam.



  • M.P = ₹1000
  • S.P  = ₹800

Discount = M.P -S.P

D = ₹200

Discount Percentage = (Discount) / MP × 100

D% = 200/1000 × 100 = 20%

Example 2: Sita purchased an article from Mr. Ramlal at a cost of ₹500 after Mr. Ramlal offered a discount of 15%. How much did the article cost to Mr. Ramlal originally?



  • Selling Price, S.P = ₹500
  • Discount Percentage = 15%

Let Market Price be x

Discount Percentage =  (x – 500)/x × 100

15 =  (x – 500)/x ×100

15x = (x – 500)×100

15x = 100x – 50000

85x = 50000

x = 588.23

Therefore, article cost Mr Ramlal ₹588.23

Example 3: The marked price of a jacket was ₹2500. After bargaining, Mallika bought it for ₹1750. At what discount, Mallika got the jacket?



  • Marked Price, M.P. = ₹2500
  • Selling Price, S.P. = ₹1750

Discount Percentage =  (2500 – 1750)/2500  × 100

D% = 750/2500  × 100

D% = 30%

Therefore, Mallika brought jacket at 30% discount.

Example 4: A shopkeeper forselling Refrigerator is ₹15500. It is selling a discount of 15% on its marked price and the .shopkeeper still gains 8%. Find the marked price of the Refrigerator?



  • Cost Price(CP) of Refrigerator =  ₹15500
  • Gain% = 8%

Selling Price(SP) = [{(100 + gain%)/100} × CP]

SP = ₹ [{(100 + 8)/100} × 15500]

SP = ₹ [(108/100) × 15500]

SP = ₹ 16740…(i)

Let Marked Price(MP) of refrigerator be x

Discount(D) = 15% of x

D = {x × (15/100)}

D = 3x/20

SP = (MP) – (D)

SP = x –  3x/20

SP = 17x…(ii)

from (i) and (ii)

17x = 16740

x = (16740 × 20)/17

x = 19695

Hence, the Marked Price of Refrigerator is ₹19695

Practice Questions on Discounts

Q1. If a 100 rupees item is available at 20% discount. What is the selling price of item after the discount?

Q2. If you purchased an object of 1200 rupees at 20% discount and gets an additional discount of 5% for cash payment, what is Selling Price of the object??

Q3. A retailer sells an object of CP 800 at a discount of 20% after increasing its price by 25%, then what is the selling price of the object?

Q4. Find the selling price of an object selling at a discount of 15% and the market price is 1999 rupess.

Discounts – FAQs

1. What is Meaning of Discount?

Discount is defined as the rebate given by the retailer on the purchase of a certain item in a certain condition. Discount is always calculated on the marked price of the object.

2. What is Discount Formula?

Discount formula is used to calculate the discount on the object it is given as,

  • Discount = Marked Price – Selling Price

If discount(%) is given,

  • Discount(%) = Discount(%)/100 × Marked Price

3. What is Discount Rate?

Discount rate is the amount of money deducted from the marked price of the object. It is calculated using discount percentage.

4. What is the Formula 20% Discount?

20% discount is calculated as suppose the marked price is MP

Discount(D) = 20% of MP

D = 20/100 × MP, i.e. D = MP/5

5. How do you Calculate a 5% Discount?

5% discount is calculated as,

D = 5% of MP, now D = 5/100 × MP, thus, 5% discount formula is, D = MP/20

6. How do you calculate 25% off?

25% discount is calculated as,

D = 25% of MP, now D = 25/100 × MP, thus, 25% discount formula is, D = MP/4

7. What is 20% discount on 90?

20% discount on 90 is calculated as,

Discount(D) = 20% of 90

D = 20/100 × 90, i.e. D = 18

8. What is Percent Discount Formula?

The percent discount formula is,

Discount% = (Discount/Marked Price) × 100

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