Discount Price and Discount Percentage in Excel

To find a sale price, multiply the price by 1 minus the discount. To find the discount percentage from two prices, divide the saving by the original price.

fx=C3*(1-D3)
ProblemCalculate a sale price or a discount percentage
Functions usedArithmetic
Works inAll Excel versions

Sale price after a discount

20% off means paying 80% of the price, so multiply by 1 minus the discount:

=C3*(1-D3)
Excel formula calculating sale prices after a percentage discount

A ₹1,200 shirt with 20% off costs ₹960. The saving itself is =C3*D3, ₹240.

How the formula works

  1. D3 is the discount, 20%, stored as 0.2.
  2. 1-D3 is 0.8: the share of the price you still pay.
  3. Multiplying the price by 0.8 gives the sale price.

Discount percentage from two prices

When you know the original and sale prices, divide the saving by the original price:

=(C3-D3)/C3
Excel formula calculating the discount percentage from original and sale prices

₹1,200 down to ₹999 is a 16.8% discount. =1-D3/C3 gives the same answer.

Two discounts in a row

An extra 10% off an already discounted price isn’t 30% off. Apply each discount in turn:

=C2*(1-C3)*(1-C4)
Excel formula applying two successive discounts

20% then 10% off ₹2,000 gives ₹1,440: a total discount of 28%, not 30%.

Discount formulas

To calculate Formula
Sale price =Price*(1-Discount)
Amount saved =Price*Discount
Discount % =(Price-Sale)/Price
Original price from sale price =Sale/(1-Discount)
Two discounts =Price*(1-D1)*(1-D2)

Notes

  • Always divide by the original price, not the sale price, for the discount percentage.
  • Round sale prices with ROUND, or to a price ending such as ₹999 with MROUND and a subtraction.
  • Discounts are usually applied before GST. Add GST to the sale price, not the original.

Common errors

Problem Cause Fix
Discount too small Divided by the sale price Divide by the original price
Extra discount overstated Discounts added together Multiply by each (1-discount) in turn
Shows 0.2 instead of 20% Cell not formatted as a percentage Press Ctrl+Shift+%

Practice file

All three examples plus the formula table.

Download .xlsx

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