In this article, we will define and discuss how to calculate percentage discount, but before that, lets define discount. Discount is the amount deducted from the usual cost of something. We can express discount amount in actual amount or as a percentage of the original amount; also known as percentage discount.

Percentage discount is a percentage of the original amount (price/cost) deducted.

### Formula to Calculate Percentage Discount.

Given the original amount (price) and the discounted amount, you can easily find the % discount using this percentage discount formula.

From the formula above, you need the discount amount and the original price. You can also calculate the discount amount by getting the difference between the original price and the new price after discount.

#### Example:

A bottle of wine usually costs Sh.1000 at the local retailer. Since it’s Easter, there is a discount and now the bottle is selling at Sh.800. What is the percentage Discount?

**Discount Amount = Original Price – New Price After Discount**

** = 1000 – 800**

** = 200**

Now that we have the **discount amount** and the **Original price**, we can just feed the values into our formula to determine the percentage discount.

The percentage discount on the bottle of wine is 20%. Given, the percentage discount and the original price, it’s possible to calculate discount amount.