How to Calculate Cost Savings Percentage

Step-by-Step Guide

1. 1

   Step 1: Determine the original price of the product or service.

   For most purchases, this is the retail price before any coupons or discounts are applied.
   
   For example, if the original, retail price of a sweater is $50, use $50 as your original price.
   
   For an hourly service, multiply the standard billing rate by the number of hours normally billed.
2. 2

   Step 2: Determine the new price of the product or service.

   This is the price after any sales promotions, discounts, coupons, or deals that you received on it.
   
   For example, if you ultimately paid $40 for the sweater after all discounts, the new price is $40. , To do this, subtract the new price from the original price.
   
   In this example, the price difference is the original price of $50 minus $40, or $10. , In this example, that’s $10 divided by the original $50 price tag, or
   0.2. , In this example, that’s
   0.2 multiplied by 100, or 20 percent.
   
   This means you saved 20 percent on the purchase of the sweater.
3. 3

   Step 3: Determine the price difference.

4. 4

   Step 4: Divide the price difference by the original price.

5. 5

   Step 5: Multiply the decimal by 100 (or move the decimal point over two spaces to the right) to convert it to a percentage.

Detailed Guide

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