Everyday Math
Basic

Discount Price

Price after a percentage discount.

Formula

Final=P(1−d)\text{Final} = P(1 - d)

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Variables

POriginal price
dDiscount (decimal)

Example

$80 at 25% off = $60

How it works

This formula finds the amount you pay after taking a percentage off the original price. The factor (1 - d) means you keep the remaining fraction of the price: for example, a 20% discount means you pay 80% of the original cost. It works because discounts reduce the starting price by a set proportion before the final amount is calculated.

When to use it

Use this when shopping sales, calculating coupon savings, or finding reduced prices in budgets and invoices. It is also useful anytime a price or cost is lowered by a percentage.

Worked example, step by step

Original price, P = $50 Discount, d = 10% = 0.10 Substitute into the formula: Final = P(1 - d) Final = 50(1 - 0.10) Final = 50(0.90) Final = 45 So the discounted price is $45.

Common mistakes to avoid

  • Using the percent as 10 instead of converting it to 0.10
  • Subtracting the discount from the original price without finding the percentage amount correctly
  • Multiplying by d instead of by (1 - d)

Did You Know?

Two successive discounts do not simply add up.

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Reviewed & maintained by the FormulaWon editorial teamLast reviewed September 2026