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CS17 Learning Centre · Money & Finance

Calculating Discounts

Find sale prices, savings and the effect of successive discounts.

Understanding the concept

A discount reduces an original price by a stated percentage or fixed amount. Percentage discounts are calculated from the price to which they apply.

This lesson uses simple, fixed examples to explain the method. Identify the quantities, choose the correct formula, and check that the units in your answer make sense.

Sale price formula

Discount amount = original price × discount rate. Sale price = original price − discount amount.

Discount amount = original price × discount rate

Write down the original values before substituting numbers. Keep full precision during the calculation and round only when presenting the final result.

Worked example

Question: A jacket costs $120 and is reduced by 25%.

  1. Convert 25% to 0.25.
  2. Calculate the saving: 120 × 0.25 = 30.
  3. Subtract 120 − 30 = 90.
Answer: You save $30 and pay $90

Check the answer against the original question. An answer should include the appropriate unit or percentage where relevant.

Key points to remember

  • A 50% discount halves the price.
  • Two successive 10% discounts do not equal a single 20% discount.
  • Compare final checkout prices, including any delivery charges.

Common mistakes

Adding successive discount percentages together instead of applying them in order.

To avoid this, label each number, identify the starting amount and use a quick estimate to see whether the final answer is reasonable.

Try it yourself

A $60 item is reduced by 15%. What is the sale price?

Show the worked answer

Answer: 51. Try working through the method above before checking your result.

Sale-price shortcuts

Use this table as a quick reference. Check which quantities and units each method requires before calculating.

SituationMethod or meaningCalculationResult
10% offPay 90% of original price$80 × 0.90 = $72$72
20% offPay 80% of original price$80 × 0.80 = $64$64
25% offPay 75% of original price$80 × 0.75 = $60$60
50% offPay half the original price$80 × 0.50 = $40$40

More worked examples

Work through each calculation and notice how the method changes with the question.

Example 1: A $240 item is 30% off

Method: 240 × 0.70 = 168.

Answer: $168

Example 2: A $150 item is 20% off, then 10% off

Method: 150 × 0.80 × 0.90 = 108.

Answer: $108

Example 3: A $60 item has $15 off

Method: 60 − 15 = 45; 15 ÷ 60 × 100 = 25.

Answer: $45; 25% off

Using this in everyday life

Compare the final price, not just the advertised percentage. Delivery charges, minimum-spend conditions and exclusions may change which offer is better.

Before you begin: Identify what the question asks, write down the given information, use matching units, then estimate the result to catch mistakes.

Extra practice questions

Try these independently before expanding the answer. Show your working, not just the final number.

Question 1. 25% off $200

Show answer and working

200 × 0.75 = 150.

Answer: $150

Question 2. 15% off $80

Show answer and working

80 × 0.85 = 68.

Answer: $68

Question 3. 10% off $50 then another 10%

Show answer and working

50 × 0.9 × 0.9 = 40.50.

Answer: $40.50

Question 4. Saving on $120 reduced to $90

Show answer and working

120 − 90 = 30.

Answer: $30

Question 5. Discount rate from $100 to $65

Show answer and working

35 ÷ 100 × 100 = 35.

Answer: 35%