To calculate percentage savings, you simply need to determine the difference between the original price and the new price, divide that difference by the original price, and then multiply by 100.
Here's the formula:
*Percentage Savings = ((Original Price - New Price) / Original Price) 100**
Let's break it down with an example:
- Original Price: $100
- New Price: $80
- Find the difference: $100 - $80 = $20
- Divide the difference by the original price: $20 / $100 = 0.2
- Multiply by 100 to get the percentage: 0.2 * 100 = 20%
Therefore, you saved 20% on the item.
Here are some practical insights:
- Percentage savings can be applied to various situations: This formula can be used to calculate savings on products, services, bills, and even investments.
- Understanding percentage savings helps you make informed decisions: It allows you to quickly compare prices and determine the best deals.
- Percentage savings can be used for budgeting and financial planning: Knowing how much you are saving can help you track your progress and make adjustments to your spending habits.
Remember: Always use the original price as the denominator when calculating percentage savings. This ensures that you are accurately reflecting the amount saved relative to the original cost.
