# Discount Rates

## Single and multiple discounts

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

*N = L (1 - i /100) (1)*

*where *

*N = net price*

*L = list price*

*i = discount rate (%)*

#### Example - Single Discount Rate

With a list price of *500* and a single discount rate of *25%* - the net price can be calculated as

*N = (500) (1 - (25%) /100) *

* = 375*

### Multiple Discounts

Discounts are often offered in multiple terms. The net price with multiple discounts can be calculated as

*N = L (1 - i _{1} / 100) *

*(1 - i*

_{2 }/ 100) ...*(1 - i*

_{N}/ 100) (2)*where *

*i _{1..N} = discount rate for term (%)*

#### Example - Multiple Discount Rate

With a list price of *500* and a two multiple discount rates of *25%* and *10% (25 - 10)* - the net price can be calculated as

*N = (500) (1 - (25 %) / 100) **(1 - (10 %) / 100) *

* = 337.5*

### Single and Multiple Discounts Table

The table bellow can be used as a shortcut to calculate net price with multiple discount terms.

Discount (%) | Net Price Factor |
---|---|

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 |

### Example - Net Price with 25%, 10%, 10%

The net price of a list price *500* with multiple discount rates as *25%, 10%, 10% and 5% - or (25 - 10 - 10 - 5)* in the table above - can be calculated as

*N = 0.5771 ( 500) *

* = 289*

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