Discount is the amount deducted from the usual cost of something. The discount amount can be displayed 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.

Given the original amount (price) and the discounted amount, you can easily calculate the percentage 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 out formula to calculate 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.