Discount Calculator
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How to Use This Calculator
Step 1: Enter the original price in the "Original Price" field. This is the full price before any discount is applied.
Step 2: Enter the discount percentage. If an item is "30% off," enter 30. For a "buy one get one half off" deal, you would need to calculate the effective discount separately.
Step 3: Click Calculate. The result shows the final sale price. The breakdown shows the original price and the amount you save.
Understanding Discounts and Sale Pricing
A discount reduces the original price by a percentage. When a store advertises "25% off," they are removing one quarter of the original price. The remaining 75% is what you pay.
Discounts vs markups: Retail pricing involves both. A product might cost $50 wholesale, get marked up 100% to $100 retail, then discounted 30% to a $70 sale price. The store still makes $20 profit per unit at the "discounted" price.
Stacked discounts do not simply add up. A 20% off coupon on top of a 30% off sale is not 50% off. The first discount reduces $100 to $70, then the second takes 20% off $70, giving $56 — a total savings of 44%, not 50%. Each successive discount applies to the already-reduced price.
Common pricing psychology: Prices ending in .99 or .97 feel significantly cheaper than the next round number. A $19.99 item feels much cheaper than $20. Retailers also use "anchor pricing" — showing the original price next to the sale price to emphasize the perceived value of the discount.
Sales tax applies after the discount. In most US jurisdictions, sales tax is calculated on the discounted price, not the original. A $100 item at 25% off costs $75 plus tax on $75 — not tax on $100.
Discount Calculation Formula
Savings = Original Price × (Discount / 100)
Sale Price = Original Price − Savings
Or equivalently: Sale Price = Original Price × (1 − Discount / 100)
Example: Original price $89.99, discount 35%.
- Savings = $89.99 × 0.35 = $31.50
- Sale price = $89.99 − $31.50 = $58.49
Reverse calculation — finding the original price from the sale price:
Original = Sale Price / (1 − Discount/100)
If an item is $60 after 25% off: Original = $60 / 0.75 = $80
Stacked discounts formula:
Final Price = Original × (1 − Discount1/100) × (1 − Discount2/100)
$100 with 30% off then 20% off: $100 × 0.70 × 0.80 = $56
Discount Quick Reference
| Discount | You Pay | On $50 | On $100 | On $200 |
|---|---|---|---|---|
| 10% off | 90% | $45 | $90 | $180 |
| 15% off | 85% | $42.50 | $85 | $170 |
| 20% off | 80% | $40 | $80 | $160 |
| 25% off | 75% | $37.50 | $75 | $150 |
| 30% off | 70% | $35 | $70 | $140 |
| 33% off | 67% | $33.50 | $67 | $134 |
| 40% off | 60% | $30 | $60 | $120 |
| 50% off | 50% | $25 | $50 | $100 |
| 60% off | 40% | $20 | $40 | $80 |
| 75% off | 25% | $12.50 | $25 | $50 |
Examples
Example 1: Simple Sale
A jacket originally costs $120 and is 25% off. Enter 120 and 25. You save $30, sale price is $90.
Example 2: Clearance Deal
A $79.99 pair of shoes is marked 60% off. Enter 79.99 and 60. You save $48.00, sale price is $32.00. At more than half off, this is a significant clearance reduction.
Example 3: Small Discount
A $45 book is 10% off with a store membership. Enter 45 and 10. You save $4.50, sale price is $40.50. Worth it if you were going to buy the book anyway.
Tips for Smart Discount Shopping
Calculate cost-per-use, not just the discount. A $200 jacket at 50% off ($100) that you wear 100 times costs $1 per wear. A $30 shirt at 50% off ($15) that you wear 5 times costs $3 per wear. The "expensive" jacket is the better value.
Stacked discounts multiply, not add. A 20% coupon on a 30% sale is 44% total savings, not 50%. Calculate the final price to avoid overestimating your savings.
Compare the sale price, not the discount percentage. Two stores selling the same item: Store A has it at $100 with 30% off ($70). Store B has it at $80 with 10% off ($72). Store A's bigger discount still gives the better price.
Sales tax applies to the discounted price. Your final cost is the sale price plus tax, not the original price plus tax minus discount. This works in your favor.
"Up to X% off" means the maximum discount. When a store advertises "up to 60% off," most items will have smaller discounts. The 60% applies to a few clearance items.
Frequently Asked Questions
How do stacked discounts work?
Is sales tax calculated before or after the discount?
How do I find the original price from a sale price?
What is the difference between "% off" and "% of"?
Is a bigger discount always a better deal?
How do I calculate BOGO deals?
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