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The term discount can be used to refer to many forms of reduction in price of a good or service. Two types of discounts are discounts in which you get a percent off, or a fixed amount off.

A percent off of a price typically refers to getting some percent, say 10%, off of the original price of the product or service. For example, if a good costs $45, with a 10% discount, the final price would be calculated by subtracting 10% of $45, from $45, or equivalently, calculating 90% of $45:

10% of $45 = 0.10 × 45 = $4.50

$45-$4.50=$40.50

or

90% of $45 = 0.90 × 45 = $40.50

In this example, you are saving 10%, or $4.50.

A fixed amount off of a price refers to subtracting whatever the fixed amount is from the original price. For example, given that a service normally costs $95, and you have a discount coupon for $20 off, this would mean subtracting $20 from $95 to get the final price:

$95 – $20 = $75

In this example, you are saving the fixed amount of $20.

The above examples are two of the most common discount methods. There are numerous others that can be more confusing, such as stackable discounts where you can get 20% off the original price, then 15% more off of that discounted price. If you need to do these kinds of calculations, refer to the Percent Off Calculator.