Calculating discounts in Excel is used in many financial scenarios. Whether you’re applying a percentage discount or a fixed amount discount, Excel offers tools to perform these calculations.
Here’s a guide on how to calculate discounts in Excel:
A percentage discount is a common way to reduce the price of a product or service. To calculate a percentage discount in Excel:
- Enter the original price of the item in one cell. I used A1.
- Enter the discount percentage in another cell. It is B1 for me (e.g., 10% for a 10% discount).
- In a third cell, use the formula to calculate the discounted price:
=A1 * (1 – B1)
For example, if the original price is $100 and the discount is 10%, the formula will calculate:
=100 * (1 – 0.10)
The result will be $90, which is the discounted price.
Fixed Amount Discount
A fixed amount discount deducts a specific amount from the original price. To calculate a fixed amount discount in Excel:
- Enter the original price in A1.
- Enter the discount amount in B1 (e.g., $20 for a $20 discount).
- In a third cell, use the following formula to calculate the discounted price:
=A1 – B1
For instance, if the original price is $100, and the discount is $20, the formula will calculate:
=100 – 20
The result will be $80, which is the discounted price.
If you want to round the discounted price to a specific number of decimal places, you can use ROUND function. For example:
=ROUND(A1 * (1 – B1), 2)
This formula will round the discounted price to two decimal places.