STEP 0: Pre-Calculation Summary
Formula Used
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
(Calculation completed in 00.004 seconds)
You are here -
Home »

## 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!

## <Capital Budgeting Calculators

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)
Payback Period
​ Go Payback Period = Initial Investment/Cashflow per Period
Cost of Debt
​ Go Cost of Debt = Interest Expense*(1-Tax Rate)

TD = multi(LP,TDR)

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).