How do you calculate deal price?

Calculating Deal Prices: Understanding Discounts and Selling Prices

Navigating the world of deals often hinges on understanding how prices are determined. A crucial element in this calculation is the discount, which represents the difference between the original listed price and the final selling price. This article will clarify how to calculate both the discount and the selling price, empowering you to make informed decisions when presented with deals.

The core principle is this: the discount percentage is derived from the difference between the original listed price and the selling price, expressed as a percentage of the original listed price. Essentially, it quantifies the reduction in cost for the buyer.

Let’s illustrate with examples. If a product is initially listed at $100 and is sold for $80, the discount is calculated as follows:

1. Difference: $100 (Listed Price) – $80 (Selling Price) = $20

2. Percentage: ($20 / $100) * 100% = 20%

Therefore, the discount in this scenario is 20%.

Conversely, if you know the listed price and the discount percentage, calculating the selling price is equally straightforward. For example, if an item is listed at $50 and has a 15% discount, the selling price is calculated as:

1. Discount Amount: $50 (Listed Price) * 0.15 (Discount Percentage) = $7.50

2. Selling Price: $50 (Listed Price) – $7.50 (Discount Amount) = $42.50

So, the selling price in this case is $42.50.

Understanding both the calculation of the discount percentage and the determination of the selling price is crucial for price comparisons and identifying the most favorable deals. Knowing these methods enables informed purchasing decisions, maximizing value while navigating the complexities of retail pricing.