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Discount Rates
Single and multiple discounts
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A discount is a deduction in percentage from the original price offered by the supplier.
- the base is the original price of the item - or the "list price"
- the price after discount is the "net price"
Single Discount
A single discount can be estimated as
NP = LP (1 - DR /100)
where
NP = Net Price
LP = List Price
DR = dicount rate (%)
Example - Single Discount Rate
With a list price of 100 and a single discount of 25% - the net price can be calculated as
NP = 100 (1 - (25%) /100)
= 75
Multiple Discounts
Discounts are often offered in multiple terms. The net price with multiple discounts can be calculated as
NP = LP (1 - DR1 / 100) (1 - DR2 / 100) ... (1 - DRN / 100)
Example - Multiple Discount Rate
With a list price of 100 and a two multiple discount rates of 25% and 10% (25-10) - the net price can be calculated as
NP = 100 (1 - 25/100) (1 - 10/100)
= 67.5
Single and Multiple Discounts Table
| Discount (%) | Net Price |
| 10 | 0.9 |
| 10-10 | 0.81 |
| 20 | 0.8 |
| 20-5 | 0.76 |
| 20-5-5 | 0.722 |
| 20-10 | 0.72 |
| 20-10-10 | 0.648 |
| 25 | 0.75 |
| 25-5 | 0.7125 |
| 25-5-5 | 0.6769 |
| 25-5-10 | 0.6413 |
| 25-10 | 0.675 |
| 25-10-5 | 0.6413 |
| 25-10-10 | 0.6075 |
| 25-10-10-5 | 0.5771 |
| 30 | 0.7 |
| 30-5 | 0.665 |
| 30-5-5 | 0.6318 |
| 30-5-10 | 0.5985 |
| 30-10 | 0.63 |
| 30-10-5 | 0.5985 |
| 30-10-10 | 0.567 |
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