Discount
A shirt is marked ₹800 and the shop offers "20 % off". You actually pay ₹640. The ₹160 you save is the discount.
The price printed on the item is the marked price. The amount the shopkeeper takes off is the discount. What the customer really pays is the selling price.
In the figure: Marked price 800: discount 20 % = 160 (orange) and selling price 640 (blue) = 80 % of the marked price.
Formula: Discount = Marked price − Selling price
In words: Discount % = Discount ÷ Marked price × 100. Discount is always worked out on the marked price.
Discount
In the app you can move this figure with your finger.
Open in the app- Easy: Marked price ₹800, discount 20 %. Discount = 800 × 20 ÷ 100 = ₹160 ; selling price = 800 − 160 = ₹640.
- Medium: Marked price ₹1250, selling price ₹1000. Discount = 1250 − 1000 = ₹250 ; discount % = 250 ÷ 1250 × 100 = 20 %.
- Exam-type: After a 15 % discount the selling price is ₹1190. Marked price? Selling price is 85 % of marked price, so marked = 1190 ÷ 85 × 100 = ₹1400.
- Exam-type: Cost price ₹1000. The item marked ₹1400 is sold after 15 % off at ₹1190. Profit = 1190 − 1000 = ₹190 ; profit % = 190 ÷ 1000 × 100 = 19 %.
Kinds of price
| Price | Meaning | Who sees it |
|---|---|---|
| Marked (MP) | printed on the item | customer |
| Selling (SP) | price after discount | customer pays |
| Cost (CP) | what the shopkeeper paid | known to the shopkeeper |
The marked price is the larger one and the selling price the smaller; their difference is the discount.
Never find the discount on the cost price; it is always on the marked price.
Selling price = marked × (100 − discount %) ÷ 100. With 20 % off you pay 80 % of the marked price. Memory clue: Discount means less: take 100 minus the discount % and that share of the marked price.
Spot the difference
| Point | Marked price | Selling price |
|---|---|---|
| Meaning | written on the item | actual price after discount |
| Who pays | — | the customer pays |
| Which is larger | larger | smaller (when there is a discount) |
| Example | ₹800 | ₹640 (20 % off) |
Practice questions
- 1Marked ₹600, discount 10 %. Selling price?
- 2Marked ₹1000, selling price ₹750. Discount?
- 3Marked ₹400, discount 25 %. Selling price?
- 4Marked ₹1500, discount 20 %. Selling price?
- 5Marked ₹800, selling price ₹680. Discount per cent?
- 6After a 25 % discount the selling price is ₹1500. Marked price?
- 7Cost ₹1000, marked ₹1500, discount 20 %. Profit per cent?
- 8An item marked ₹2400 is sold at 25 % off and still gives 20 % profit. Cost price?
Show answers (try them yourself first)
- 1Discount = 600 × 10 ÷ 100 = 60; selling price = 600 − 60 = ₹540.
- 21000 − 750 = ₹250.
- 3Discount = 400 × 25 ÷ 100 = 100; selling price = 400 − 100 = ₹300.
- 4Discount = 1500 × 20 ÷ 100 = 300; selling price = 1500 − 300 = ₹1200.
- 5Discount = 120; 120 ÷ 800 × 100 = 15 %.
- 6Selling price = 75 % of marked; marked = 1500 ÷ 75 × 100 = ₹2000.
- 7Selling price = 1500 − 300 = 1200; profit = 1200 − 1000 = 200; profit % = 200 ÷ 1000 × 100 = 20 %.
- 8Selling price = 2400 × 75 ÷ 100 = 1800; cost × 1.2 = 1800; cost = 1800 ÷ 1.2 = ₹1500.
Commission
You sell an old scooter for ₹40,000 through an agent who charges 2 % commission. The agent gets 40000 × 2 ÷ 100 = ₹800 and you get ₹39,200.
A person who arranges a sale is an agent. The money he gets as a fixed percent of the sale amount is the commission.
In the figure: Sale amount 20000 with 10 % commission = 2000 (orange); the seller gets 18000 (green).
Formula: Commission = Sale amount × Rate ÷ 100
In words: Seller gets = Sale amount − Commission.
Commission
In the app you can move this figure with your finger.
Open in the app- Easy: Goods worth ₹20,000 sold, commission 5 %. Commission = 20000 × 5 ÷ 100 = ₹1000.
- Medium: A plot sold for ₹8,00,000, commission 1.5 %. Commission = 800000 × 1.5 ÷ 100 = ₹12,000.
- Exam-type: An agent earned ₹4500 at a 3 % rate. Sale = 4500 ÷ 3 × 100 = ₹1,50,000.
Commission is a percent of the sale amount, and sometimes both buyer and seller pay it.
2 % commission means ₹2 on every ₹100, not just ₹2.
Sale amount = commission ÷ rate × 100. Memory clue: Commission = total amount × rate ÷ 100; "total times rate".
Spot the difference
| Point | Discount | Commission |
|---|---|---|
| Who gives | shopkeeper to customer | seller to agent |
| Percent of | marked price | sale amount |
| Effect | price falls | seller receives less |
Practice questions
- 1Marked price ₹500, discount 10 %. Selling price?
- 2Marked price ₹900, selling price ₹810. Discount?
- 3Sale of ₹20,000 with 5 % commission. Commission?
- 4Marked ₹1600, discount 25 %. Selling price?
- 5After 30 % off the selling price is ₹1470. Marked price?
- 6A plot is sold for ₹8,00,000 with 1.5 % commission. Commission?
- 7Cost ₹1280. The item marked ₹2000 is sold at 20 % off. Profit %?
- 8An agent earned ₹3600 at 4 % commission. Find the sale and what the seller got.
Show answers (try them yourself first)
- 1Discount = 500 × 10 ÷ 100 = 50 ; selling price = 500 − 50 = ₹450.
- 2900 − 810 = ₹90.
- 320000 × 5 ÷ 100 = ₹1000.
- 4Discount = 1600 × 25 ÷ 100 = 400 ; selling price = 1600 − 400 = ₹1200.
- 5Selling price is 70 % of marked. Marked = 1470 ÷ 70 × 100 = ₹2100.
- 6800000 × 1.5 ÷ 100 = ₹12,000.
- 7Discount = 2000 × 20 ÷ 100 = 400 ; SP = 1600 ; profit = 1600 − 1280 = 320 ; profit % = 320 ÷ 1280 × 100 = 25 %.
- 8Sale = 3600 ÷ 4 × 100 = ₹90,000 ; seller gets = 90000 − 3600 = ₹86,400.