A discount is a reduction in the marked (or list) price of an article. For example, 20% discount means a reduction of 20% in the marked price of an article. If the marked price of an article is Rs.100, it is sold for Rs.80, i.e. Rs.20 less than the marked price.

Marked Price (or List price)

The marked price (MP) of an article is the price at which the article is listed for sale. Since this price is written (marked) on the article, so it is called the marked price.


The discount is the reduction from the marked price of the article. 

Net selling price (SP)

In case of discount selling, the price of the article obtained by subtracting discount from the marked price is called the Net Selling price or Selling price (SP).