The marked price, also known as the list price or the sticker price, is the original price of a product or service as set by the seller before any discounts or negotiations. It is the price that is prominently displayed or "marked" on the product or its packaging.

The price printed on an article or written on a slip attached to it is called its Marked Price (abbreviated M.P)/Listed Price/Catalogued Price/Advertised Price.

When a seller offers discounts or promotional offers, they reduce the marked price to attract customers and encourage sales. The difference between the marked price and the actual selling price after discounts is known as the discount amount.

For example, if a shirt is marked at $50 in a retail store but is sold at a discounted price of $40 during a sale, then $50 is the marked price, and $40 is the selling price.

The marked price serves as a reference point for both the seller and the buyer, indicating the value assigned to the product by the seller. It provides transparency in pricing and allows customers to assess the value they receive when making a purchase decision.


The selling price (SP) is the price at which a product or service is sold to a customer. It is the actual amount paid by the buyer to the seller in exchange for the goods or services. The selling price may be equal to or less than the marked price, depending on factors such as discounts, promotions, negotiations, or any additional charges.

The price of an article after deducting discount from the Marked Price is called Selling Price (abbreviated S.P) or Net Price.It is the price of the article paid by a customer.

In retail, the selling price is the final price that a customer pays at the checkout counter, after any applicable discounts or taxes have been applied. It is what determines the revenue earned by the seller from the sale of the product.

Mathematically, the relationship between the marked price (MP), the discount (if any), and the selling price (SP) can be expressed as:

1) Selling Price (SP) = Marked Price (MP) − Discount


2) Discount Percentage = (------------- X 100)%

                               Marked Price 

So, if a product has a marked price of $100 and a discount of $20, then the selling price would be $100 - $20 = $80.

Alternatively, if there is no discount, then the selling price is simply equal to the marked price.

It's worth noting that in some cases, the selling price may exceed the marked price, especially if there are additional charges or fees added on top of the original price.


The amount deducted from the Marked Price of an article is called Discount.

Usually,discount is given as a percentage on the Marked Price.Thus,by a discount of 10%,we mean that the price of the article is to be reduced by 10% of the Marked Price.

Remember that discount is always given on the Marked Price.

Calculating discounts involves determining the amount of money saved when purchasing an item at a reduced price. There are different methods to calculate discounts based on the type of discount being applied:-

  1. Percentage Discount:-To calculate the discount amount for a percentage discount, you can use the following formula:-

                                          (Percentage Discount)

Discount Amount = Original Price X -----------------------


Once you have calculated the discount amount, you can find the selling price by subtracting the discount amount from the original price:

Selling Price = Original Price − Discount Amount

  2. Fixed Amount Discount:- For a fixed amount discount, the calculation is simpler. You just subtract the fixed discount amount from the original price to find the selling price:

Selling Price = Original Price − Fixed Amount Discount 

  3. Net Price:- In some cases, especially in business transactions, discounts may be given based on a combination of percentage and fixed amount discounts. In such cases, you can calculate the net price, which is the final price after all discounts have been applied:

Net Price = Original Price − Total Discount

Here, the total discount is the sum of all percentage discounts and fixed amount discounts.