Chain Discount Calculator

Chain discounts are multiple discounts which a business offers on its original list price. They are useful in encouraging customers to take certain actions such as to making a volume purchase. This chain discount calculator is useful for calculating the net price of a product after deducting a series of discounts.

If you need further information on the use of chain discounts and the calculations they involve this is more fully discussed in our chain discounts in accounting tutorial.

chain discount calculator v 1.0
Chain Discount Calculator Preview

Instructions

The Excel chain discount calculator, available for download below, is used by entering details of the original list price and up to five discount percentages. The calculator works out the net price of the product after deducting the discounts and also calculates the single equivalent discount rate (SED) for the chain discount. To use the calculator enter the details as follows:

Step 1

Enter the original list price of the product.

Step 2

Enter up to five discount percentages. For example, if the business offers 25% trade discount on a particular product and then a further 10% for purchasing in bulk quantities (normally quoted as 25/10%), then enter 25% in column B and 10% in column C, and leave the other discount percentages blank or enter 0%.

For each percentage the calculator works out the discount given and the net price after that particular chain discount. The chain discount calculator also provides a summary showing the list price, total discount and net price to be paid.

Finally, the single equivalent discount rate (SED) is calculated. The SED represents the discount rate which when applied to the original price results in the same net price and total discount as applying the chain of discounts. For example, a chain of two discounts of 25/10% is equivalent to a single discount rate of 32.5%

Chain Discount Calculator Download

The chain discount calculator spreadsheet is available for download in Excel format by following the link below.

The chain discount calculator is one of many financial calculators used in bookkeeping and accounting, discover another at the links below.

Notes and major health warnings
Users use this chain discount calculator at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of a series discount calculator that you might use when considering how to calculate chain discounts. It is purely illustrative. This is not intended to reflect general standards or targets for any particular business, company or sector. If you do spot a mistake in this multiple discount calculator, please let us know and we will try to fix it.
Chain Discount Calculator November 6th, 2016Team

You May Also Like


Related pages


accrued expenses journal entriesprepare a correct bank reconciliationimputed interest calculation examplein which journal are adjusting entries recordeddupont analysis roaadjusting entries exampleformula for receivable turnoverwhat is journal and ledger with examplejournal entries basicsthe formula for the gross margin percentage isjournal entry for machinery purchaseapplied manufacturing overhead formulainventory turns rationon profit balance sheet template exceldifference between capital and drawingshow to prepare a multiple step income statementdepreciation double entrymanufacturing overhead fixed or variable costballoon payment calculator excellifo reservesreplenish petty cash journal entryjournal adjusting entriesadvantages of double entry system of accountingtrade receivables formulamileage claim form templateamortizing bondsjournal entries for unearned revenueoverstated understated accountingytm in excelaverage number of days to collect accounts receivable formulaentries for bad debtsnonprofit chart of accounts examplethe imprest systemhow do you calculate markup percentagerequisition form templateexcel percentage discount formuladefinition of fob destinationbank reconciliation investopediawhat is meant by deferred taxformula perpetuityhow to determine manufacturing overheadfuture value of an annuity calculatorar accounting entriespurchase price variance accountingformat of debtors control accountsample ledger sheetannuity formula calculatorfactored accounts receivableword voucher templateover applied overheadunder a perpetual inventory systemfv formula in excelwhat does eom mean in accountingcapital lease entriesdepreciation straight line method examplesundry expenses definitionwhat is included in manufacturing overheadcontra revenue definitionfactory overhead variance analysisfactored debtsdefer revenueaccounting quiz questionsdepreciation calculation formulasuspense account in accountinginventory obsolescence accountingspreadsheet accounts templatelifo vs fifobond premium calculatorexamples of accrued liabilitiesexcel checking account templatepaid creditor on account journal entrybeginning stockholders equity formularecognizing accounts receivabletypes of accounting ledgersusefulness of variance analysissales chart excel templatefree accounting ledger paperincome statement horizontal analysis