Trade Discount Calculator

✖List Price is the original or undiscounted price of the product or service.ⓘ List Price [LP]			+10% -10%
✖Trade Discount Rate is the percentage of discount offered by the seller.ⓘ Trade Discount Rate [TDR]			+10% -10%

✖Trade Discount is a discount that is referred to as a discount given by the seller to the buyer at the time of purchase of goods.ⓘ Trade Discount [TD]

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Formula

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Trade Discount

Formula

`"TD" = multi("LP","TDR")`

Example

`"150"=multi("1000","0.15")`

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Trade Discount Solution

STEP 0: Pre-Calculation Summary

Formula Used

Trade Discount = multi(List Price,Trade Discount Rate)
TD = multi(LP,TDR)
This formula uses 1 Functions, 3 Variables

Functions Used

multi - Multiplication is the process of calculating the product of two or more numbers., multi(a1, …, an)

Variables Used

Trade Discount - Trade Discount is a discount that is referred to as a discount given by the seller to the buyer at the time of purchase of goods.
List Price - List Price is the original or undiscounted price of the product or service.
Trade Discount Rate - Trade Discount Rate is the percentage of discount offered by the seller.

STEP 1: Convert Input(s) to Base Unit

List Price: 1000 --> No Conversion Required
Trade Discount Rate: 0.15 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

TD = multi(LP,TDR) --> multi(1000,0.15)

Evaluating ... ...

TD = 150

STEP 3: Convert Result to Output's Unit

150 --> No Conversion Required

FINAL ANSWER

150 <-- Trade Discount

(Calculation completed in 00.004 seconds)

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Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Kashish Arora

Satyawati College (DU), New Delhi

Kashish Arora has verified this Calculator and 50+ more calculators!

< 18 Capital Budgeting Calculators

Overall Cost of Capital

Go Overall Cost of Capital = (Market Value of the Firm’s Equity)/(Market Value of the Firm’s Equity+Market Value of the Firm’s Debt)*Required Rate of Return+(Market Value of the Firm’s Debt)/(Market Value of the Firm’s Equity+Market Value of the Firm’s Debt)*Cost of Debt*(1-Tax Rate)

Discounted Payback Period

Go Discounted Payback Period = ln(1/(1-((Initial Investment*Discount Rate)/Periodic Cash Flow)))/ln(1+Discount Rate)

Net Present Value (NPV) for even cash flow

Go Net Present Value (NPV) = Expected Cash Flow*((1-(1+Rate of Return)^-Number of Periods)/Rate of Return)-Initial Investment

Capital Asset Pricing Model

Go Expected Return on Investment = Risk Free Rate+Beta on Investment*(Expected Return on Market Portfolio-Risk Free Rate)

Double Declining Balance Method

Go Depreciation Expense = (((Purchase Cost-Salvage Value)/Useful Life Assumption)*2)*Beginning PP&E Book Value

Modified Internal Rate of Return

Go Modified Internal Rate of Return = 3*((Present Value/Cash Outlay)^(1/Number of Years)*(1+Interest)-1)

Cost of Retained Earnings

Go Cost of Retained Earnings = (Dividend/Current Stock Price)+Growth Rate

After-Tax Cost of Debt

Go After Tax Cost of Debt = (Risk Free Rate+Credit Spread)*(1-Tax Rate)

Beginning Inventory

Go Beginning Inventory = Cost of Goods Sold-Purchases+Ending Inventory

Terminal Value using Perpetuity Method

Go Terminal Value = Free Cash Flow/(Discount Rate-Growth Rate)

Trade Discount

Go Trade Discount = multi(List Price,Trade Discount Rate)

Expected Monetary Value

Go Expected Monetary Value = multi(Probability,Impact)

Accounting Rate of Return

Go Accounting Rate of Return = (Average Annual Profit/Initial Investment)*100

Inventory Carrying Cost

Go Inventory Carrying Cost = (Total Carrying Cost/Total Inventory Value)*100

Certainty Equivalent Cashflow

Go Certainty Equivalent Cashflow = Expected Cash Flow/(1+Risk Premium)

Payback Period

Go Payback Period = Initial Investment/Cashflow per Period

Terminal Value using Exit Multiple Method

Go Terminal Value = EBITDA at Last Period*Exit Multiple

Cost of Debt

Go Cost of Debt = Interest Expense*(1-Tax Rate)

Trade Discount Formula

Trade Discount = multi(List Price,Trade Discount Rate)
TD = multi(LP,TDR)

What is Trade Discount?

A trade discount is a reduction in the list price of a product or service offered by a manufacturer or wholesaler to a retailer or distributor. It is a common practice in business-to-business (B2B) transactions and is used as a promotional tool to incentivize bulk purchases, foster long-term relationships with buyers, or reward certain customer behaviors.
Trade discounts are typically expressed as a percentage off the list price, although they can also be specified as a fixed amount per unit. These discounts are negotiated between the seller and the buyer and are often based on factors such as the volume of purchases, the frequency of orders, or the buyer's status in the distribution channel.
The purpose of a trade discount is to encourage larger orders or repeat business from wholesalers, retailers, or other intermediaries in the supply chain. By offering discounts, manufacturers and wholesalers can attract more customers, increase sales volume, and improve market share.

How to Calculate Trade Discount?

Trade Discount calculator uses Trade Discount = multi(List Price,Trade Discount Rate) to calculate the Trade Discount, The Trade Discount is the amount by which a manufacturer or wholesaler reduces the price of a product when it sells the product to a reseller. Trade Discount is denoted by TD symbol.

How to calculate Trade Discount using this online calculator? To use this online calculator for Trade Discount, enter List Price (LP) & Trade Discount Rate (TDR) and hit the calculate button. Here is how the Trade Discount calculation can be explained with given input values -> 150 = multi(1000,0.15).

FAQ

What is Trade Discount?

The Trade Discount is the amount by which a manufacturer or wholesaler reduces the price of a product when it sells the product to a reseller and is represented as TD = multi(LP,TDR) or Trade Discount = multi(List Price,Trade Discount Rate). List Price is the original or undiscounted price of the product or service & Trade Discount Rate is the percentage of discount offered by the seller.

How to calculate Trade Discount?

The Trade Discount is the amount by which a manufacturer or wholesaler reduces the price of a product when it sells the product to a reseller is calculated using Trade Discount = multi(List Price,Trade Discount Rate). To calculate Trade Discount, you need List Price (LP) & Trade Discount Rate (TDR). With our tool, you need to enter the respective value for List Price & Trade Discount Rate and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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