Chain Discount Calculator

Chain Discount Formula:

\[ \text{Net Price} = \text{List Price} \times \prod_{i=1}^n (1 - d_i) \]

List Price:

Discount 1:

decimal

Discount 2:

decimal

Discount 3:

decimal

Net Price:

Total Discount:

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1. What is Chain Discount?

Chain discount (also called series discount) occurs when multiple discounts are applied successively to a list price. Each discount is applied to the already discounted price from the previous step.

2. How Does the Calculator Work?

The calculator uses the chain discount formula:

\[ \text{Net Price} = \text{List Price} \times (1 - d_1) \times (1 - d_2) \times \cdots \times (1 - d_n) \]

Where:

List Price — Original price before discounts
d₁, d₂, ..., d_n — Successive discount rates (in decimal form)

Explanation: Each discount is applied sequentially, with each subsequent discount calculated on the already discounted price.

3. Importance of Chain Discount Calculation

Details: Understanding chain discounts helps businesses determine final prices after multiple promotions and helps customers understand the true value of stacked discounts.

4. Using the Calculator

Tips: Enter the original list price and at least one discount (up to three). Discounts should be entered as decimals (e.g., 0.20 for 20%).

5. Frequently Asked Questions (FAQ)

Q1: How is chain discount different from a single discount?
A: A single discount is applied once to the list price, while chain discounts are applied sequentially, each to the already discounted price.

Q2: What's the equivalent single discount for multiple chain discounts?
A: The calculator shows the total discount percentage which represents the equivalent single discount.

Q3: Does order of discounts matter in chain discount?
A: Mathematically, the order doesn't affect the final net price, though in practice some businesses might apply discounts in specific sequences.

Q4: How do I convert percentage discount to decimal?
A: Divide the percentage by 100 (e.g., 15% = 0.15).

Q5: Can I add more than three discounts?
A: This calculator handles up to three discounts, but the formula can be extended to any number of discounts.