What is the formula for discount rate?

The discount rate allows you to determine the current value of future cash flows and plays a vital role in discounted cash flow (DCF) analysis. Though there are several formulae, the most straightforward is:

Percentage Discount = (Original Price - Discounted Price)/Original Price x 100

For example, if an office chair has an original list price of ₹12,000 but is now on sale for ₹8,500, the percentage discount would be:

Percentage Discount = (₹12,000 - ₹8,500)/₹12,000 x 100

= ₹3,500/₹12,000 x 100

= 0.2916 x 100

= 29.17%

Therefore, the percentage discount available on the office chair is 29.17% on its original listed price. For quicker calculation, use an online discount calculator to make an informed decision.