DISCOUNT TYPE

Pietro Di Micio

Board Regular
Joined
Apr 29, 2020
Messages
51
Office Version
  1. 365
Platform
  1. MacOS
Hello All,

My doubt here is about not only excel but also a simple math concept; if I have to calc 10% of discount I have seen many people using both ways below, BUT the TYPE B seems more correct; in this sense I would like do understand WHEN should I use A or B.

Thanks in advance, Pietro.


TYPE A1.50010%1501.65010%1651.485
TYPE B1.50010%1.66710%1671.500


SAMPLE_A.xlsx
BCDEFGHIJ
3TYPE A1,50010%1501,65010%1651,485
4TYPE B1,50010%1,66710%1671,500
Sheet1
Cell Formulas
RangeFormula
F3F3=C3+E3
H3,G4,E3H3=F3*G3
I3,H4I3=F3-H3
E4E4=C4/(1-D4)
 

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I am not following the logic of your calculation (not really sure what you are doing there, or trying to show us).

If something costs 1500, and then you apply a 10% discount to that, the final cost would be 1350.
The calculation is simply:
= initial value * (1 - discount percent)

If 1500 is the discounted price, and you know there was a 10% discount, then the original price would be 1667.67.
The calculation is simply:
= initial value / (1 - discount percent)

They are two entirely different calculations (they go in opposite directions).
In the first one, 1500 is the cost BEFORE discount (so you are trying to figure out the discounted price).
In the second one, 1500 is the cost AFTER discount (so you are trying to figure out the original prices)
 
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