# How to Calculate Discount?

How do you calculate discount amount from the percentage rate?

## Discount Amount Calculation

Discount is the amount of cost reduced from the original cost. It is an allowance or concession in price on a purchase.

**Formula****:**

**Discount Amount = (Original Cost x Discount Percentage Rate) / 100**

**Step 1: Assuming Values**

Let us assume, for a purchase of 1 Kg of Orange, the discount percentage is 8% on the original cost of Rs. 100, then the values could be assigned as below:

**Original Cost = 100**

Discount Percentage = 8

**Step 2: **Substituting the values in the formula,** **

Amount = (100 x 8) / 100 = 8

Therefore the discount amount is** Rs**.**8**

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