Discount Formula Explained, With Examples
Every discount result comes from one formula. Once you understand what goes into it, you can sanity-check any figure you are given, whether by an employer, a bank, a teacher or another website.
The formula
Sale price = price × (1 − discount).
What each input means
- Original price (S$): the value you enter in the calculator.
- Discount (%): the value you enter in the calculator.
Example
For example, with these inputs:
- Original price (S$): 120
- Discount (%): 30
the calculator returns:
- You save: S$36.00
- Price after discount: S$84.00
How the result changes
The table keeps the other inputs at their example values and changes original price (s$).
| Original price (S$) | You save | Price after discount |
|---|---|---|
| 120 | S$36.00 | S$84.00 |
| 60 | S$18.00 | S$42.00 |
| 90 | S$27.00 | S$63.00 |
| 150 | S$45.00 | S$105.00 |
| 180 | S$54.00 | S$126.00 |
Why it matters
Interest rates, instalments and returns compound over years, so a small difference in rate or tenure turns into thousands of dollars. Working the numbers out yourself makes it easier to compare bank offers, avoid expensive debt and plan savings goals.
Calculators make it easy to compare scenarios side by side: a shorter tenure versus a lower instalment, a higher deposit versus more cash in hand, or paying down debt versus investing. Seeing the total cost, not just the monthly figure, usually makes the better choice obvious.
Inflation erodes buying power, so a savings goal set in today's dollars needs to be adjusted upwards for the years it will take to reach it. Singapore's core inflation has varied widely over the past decade, so it is worth testing a range of rates.
An emergency fund of three to six months of essential expenses protects you from having to borrow at high rates when something unexpected happens. Once that buffer is in place, extra savings can go towards longer-term goals and investments.
Related calculations
- Car Loan Calculator: Car loans in Singapore are quoted at a flat rate.
- Maximum Car Loan Calculator: MAS rules cap car loans at 70% of the price if OMV is S$20,000 or less, and 60% if OMV is higher, with a maximum tenure of 7 years.
- Additional Registration Fee (ARF) Calculator: Calculates the tiered ARF for cars registered in Singapore.
- Car Depreciation Calculator: Works out the yearly depreciation buyers in Singapore use to compare used cars.
Use the Discount Calculator to plug in your own numbers.
Run your own numbers: Discount Calculator