How to Use This Calculator
- Enter the List Price of the product or service (original price before discount)
- Enter the Discount Percentage being offered (as a whole number, e.g., 20 for 20%)
- Click the Calculate button to see the results
- The calculator will display the Net Price Factor (always between 0 and 1) and the final Net Price after discount
Understanding the Net Price Factor
The Net Price Factor represents how much of the original price remains after applying the discount. For example:
- A 25% discount gives a Net Price Factor of 0.75
- A 50% discount gives a Net Price Factor of 0.50
- A 10% discount gives a Net Price Factor of 0.90
Practical Applications
The Net Price Factor is useful for:
- Financial analysis and budgeting
- Comparing different pricing strategies
- Calculating final purchase prices when multiple discounts apply
- Evaluating the effective cost of products after promotions
Example Calculation
Suppose you have a product with a list price of $200 and it's on sale with a 30% discount:
- List Price: $200
- Discount: 30%
- Net Price Factor: 1 - (30/100) = 0.70
- Net Price: $200 × 0.70 = $140