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How to calculate a discount in Excel and Google Sheets
Topic:Finance basicsExcel & Google Sheets
=A2-(A2*B2)✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Original Price | Discount Rate | Final Price |
| 200 | 0.1 | |
| 500 | 0.25 | |
| 80 | 0.15 | |
| 1200 | 0.3 |
=A2-(A2*B2)→180
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Step by step
- 1Create two columns: Original Price (A) and Discount Rate as a decimal (B, e.g., 0.20 for 20%).
- 2In the Discount Amount column, enter =A2*B2 to compute how much is taken off.
- 3In the Final Price column, enter =A2-(A2*B2) or equivalently =A2*(1-B2) to get the price after the discount.
Tips
- Use =A2*(1-B2) as the shorter equivalent to =A2-A2*B2. Both are correct; the shorter form is easier to read.
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Frequently asked
How do I find the original price if I know the discounted price and the discount rate?
Divide the discounted price by (1 - discount rate): =A2/(1-B2).
Can I stack multiple discounts?
Multiply sequentially: =A2*(1-B2)*(1-C2) where B2 and C2 are the two discount rates.
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