Accounting Share · Inventory & purchasing
Trade Discount Series Calculator
Apply a series of trade discounts sequentially and calculate the equivalent single discount rate. Each discount applies to the price after earlier discounts.
The interactive calculator requires JavaScript. The formula and worked example below remain available.
01 / Enter your figures
Make the numbers yours.
Use one currency and consistent time periods. Amounts are shown in your input currency units; no currency conversion is performed.
02 / See the working
Your calculation
Enter your figures, then choose Calculate. Or load the worked example.
03 / Understand the method
Formula and method
Net price = List price × Product of (1 − Each discount rate)
Apply a series of trade discounts sequentially and calculate the equivalent single discount rate. Each discount applies to the price after earlier discounts.
How to use this calculator
- Collect the figures for the same entity, currency and reporting period.
- Enter each input using its label and unit. For percentages, enter 15 to mean 15%.
- Choose Calculate, inspect the breakdown and compare the result with your assumptions.
- Change one input to explore a scenario. Recalculate after edits; display rounding does not round the underlying calculation.
Inputs at a glance
- List price: A nonnegative numeric input in the units specified by the label.
- Successive discount percentages: Enter each percentage separately, e.g. 10,5. Do not add the percentages.
Worked example
Follow one calculation.
- List price
- 1000
- Successive discount percentages
- 10,5
- Calculated result
- 855
Load this example in the interactive form to inspect the intermediate amounts.
Assumptions and interpretation
This excludes settlement discounts, taxes and shipping unless those are separately incorporated into the list-price input.
The output is a model based on the figures entered. Check source records and use the accounting or contractual definitions relevant to your task before relying on a result.
Questions about this tool
What does the trade discount series calculation measure?
Apply a series of trade discounts sequentially and calculate the equivalent single discount rate. Each discount applies to the price after earlier discounts.
Which assumptions can change the result?
This excludes settlement discounts, taxes and shipping unless those are separately incorporated into the list-price input.
Why can displayed totals differ slightly from my spreadsheet?
Calculations use the unrounded input values. Only the display is rounded. Use four or six decimal places to inspect small differences, and check the timing, sign conventions and rounding policy in your spreadsheet.
Reference and further learning
Inventory reporting reference: IAS 2. These original learning examples apply the displayed formula; the reference does not certify or endorse this calculator.
Look up an accounting term · Practise with accounting questions
Formula and worked example checked 4 November 2026. Calculations run in your browser without sending the entered figures to Accounting Share. Report a calculation issue with the tool name, example inputs and expected result; avoid sharing confidential records.
