Discount Calculator

Calculate sale prices and savings from discounts. Support single discounts, double discounts, and find the original price from a discounted price.

Original Price ($)

Discount Percentage (%)

Apply a second (stacked) discount

Sales Tax (%) — optional

About Discount Calculator

Understanding Discounts: Types and How They Work

Discounts are reductions in the regular price of a product or service, offered by retailers and businesses to attract customers, clear inventory, reward loyalty, or stimulate demand during slow periods. Understanding the different types of discounts and how they work can help you make smarter purchasing decisions and accurately estimate your final cost before reaching the checkout counter.

The most common type is a percentage discount, where a fixed percentage is subtracted from the original price. For example, a 25% discount on a $120 jacket means you save $30 and pay $90. Percentage discounts are straightforward to calculate: multiply the original price by the discount rate (expressed as a decimal) to find the savings amount, then subtract from the original price.

Other common discount types include fixed-amount discounts(such as "$10 off"), buy-one-get-one (BOGO) deals,volume discounts for buying in bulk, seasonal or clearance markdowns, and coupon-based discounts that require entering a promo code. Each type has a different impact on your final price, and some can be combined with others — a practice known as "stacking" — for even greater savings.

Key Discount Facts:

Percentage discounts are the most widely used promotion type worldwide
Retailers use psychological pricing (e.g., "up to 70% off") to drive traffic
Stacking two 20% discounts does not equal 40% off — it equals 36% off
Sales tax is typically applied after the discount, reducing your total tax
Price-matching policies can help you get the best deal without waiting for sales

How to Calculate Percentage Off

Calculating a percentage discount is one of the most practical math skills you can have as a consumer. Whether you are shopping in a store, browsing online sales, or negotiating a price, knowing how to quickly determine the discounted price helps you evaluate whether a deal is truly worth it and how much money you are actually saving.

The Discount Formula

Finding the Discount Amount:

Discount = Original Price × (Discount % ÷ 100)

Finding the Sale Price:

Sale Price = Original Price × (1 − Discount % ÷ 100)

For example, suppose a pair of shoes originally costs $150 and is marked 30% off. The discount amount is $150 × 0.30 = $45. The sale price is $150 − $45 = $105. Alternatively, you can compute the sale price directly: $150 × (1 − 0.30) = $150 × 0.70 = $105. Both methods produce the same result; the direct method is often faster for mental math because you only need one multiplication.

Quick Mental Math Shortcuts:

10% off: Move the decimal one place left ($80 → $8 off → $72)
20% off: Find 10% and double it ($80 → $16 off → $64)
25% off: Divide the price by 4 ($80 → $20 off → $60)
33% off: Divide the price by 3 ($90 → $30 off → $60)
50% off: Simply halve the price ($80 → $40)

To find the original price when you know the sale price and discount percentage, reverse the formula: Original Price = Sale Price ÷ (1 − Discount % ÷ 100). If a shirt costs $45 after a 25% discount, the original price was $45 ÷ 0.75 = $60. This reverse calculation is particularly useful when you see a sale tag but the original price is not displayed.

Double and Stacked Discounts

Stacked discounts — also called double discounts, compound discounts, or successive discounts — occur when two or more percentage reductions are applied one after another. This situation commonly arises during major sales events when a store offers a storewide percentage off and you also have a coupon, or when an item is already on clearance and an additional markdown is applied.

The critical concept to understand is that the second discount is applied to the already-reduced price, not the original. This means that stacking two discounts always results in a total savings that is less than simply adding the two percentages together. For instance, 20% off followed by an additional 15% off is not equivalent to 35% off — it is actually a 32% effective discount.

Stacked Discount Formula

Final Price = Original Price × (1 − Discount₁/100) × (1 − Discount₂/100)

Effective Discount % = (1 − (1 − D₁/100) × (1 − D₂/100)) × 100

Consider a $200 jacket that is 30% off with an extra 20% coupon. First discount: $200 × 0.70 = $140. Second discount: $140 × 0.80 = $112. The total savings is $88, which represents a 44% effective discount — not 50%. The mathematical reason is that the second discount reduces a smaller amount, so its absolute dollar impact is less than if it were applied to the full original price.

An interesting property of stacked discounts is that the order does not matter. Applying 30% first then 20%, or 20% first then 30%, produces the same final price. This is because multiplication is commutative: 0.70 × 0.80 = 0.80 × 0.70 = 0.56. So regardless of how a retailer phrases the promotion, the result is identical.

Stacked vs. Single Discount Comparison:

Stacked Discounts	Effective Discount	Price on $100
10% + 10%	19%	$81.00
20% + 10%	28%	$72.00
25% + 25%	43.75%	$56.25
30% + 20%	44%	$56.00
50% + 50%	75%	$25.00

Sales Tax Impact on Discounted Prices

Understanding how sales tax interacts with discounts is essential for accurately predicting your out-of-pocket cost. In most jurisdictions, sales tax is calculated on the actual transaction price — meaning the discounted amount — rather than the original retail price. This works in your favor because a larger discount means a lower taxable amount and therefore less tax paid overall.

The calculation order matters: first apply the discount to determine the sale price, then multiply by (1 + tax rate) to find the final amount you pay at the register. For example, a $200 item at 25% off with 8% sales tax: the sale price is $200 × 0.75 = $150, and the final price with tax is $150 × 1.08 = $162. Compare this to buying the item at full price with tax: $200 × 1.08 = $216. The discount saves you $54 total — $50 from the discount itself plus $4 in reduced tax.

Tax Calculation Formula

Final Price = Sale Price × (1 + Tax Rate ÷ 100)

Total Savings = (Original Price × (1 + Tax/100)) − Final Price

Keep in mind that sales tax rates vary significantly by state, county, and city in the United States. Some states have no sales tax at all (Alaska, Delaware, Montana, New Hampshire, and Oregon), while others can have combined state and local rates exceeding 10%. Additionally, certain categories of goods — such as groceries, clothing, or prescription medications — may be exempt from sales tax or taxed at a reduced rate depending on your location.

When shopping online, sales tax rules have become more uniform since the 2018 Supreme Court decision in South Dakota v. Wayfair, which allowed states to require online retailers to collect sales tax even without a physical presence in the state. This means that most online purchases now include sales tax, making it important to factor this cost into your discount calculations regardless of whether you shop in-store or online.

Smart Shopping Strategies

Being a smart shopper goes beyond simply looking for the biggest discount percentage. Strategic shopping involves timing your purchases, comparing across retailers, understanding pricing psychology, and knowing when a deal is genuinely good versus when it is a marketing tactic designed to create urgency and impulse buying.

Timing Your Purchases

•
End of Season:
Clothing and seasonal items see the deepest discounts at the end of their respective seasons — winter coats in February, swimwear in September
•
Holiday Sales:
Black Friday, Cyber Monday, Prime Day, and Memorial Day offer significant discounts on electronics, appliances, and furniture
•
New Model Releases:
When new versions of phones, cars, or appliances launch, previous models often see substantial markdowns

Maximizing Your Savings

•
Price Tracking:
Use browser extensions and apps that track price history so you can verify that a "sale" price is truly lower than usual
•
Coupon Stacking:
Combine store coupons with manufacturer coupons and cashback offers for maximum savings on a single purchase
•
Price Matching:
Many major retailers will match a competitor's lower price — ask about their price-match policy before paying full price

One of the most valuable habits you can develop is the "cost per use" mindset. Instead of focusing solely on the discount percentage, consider how many times you will use or wear an item. A $200 pair of boots at 40% off ($120) that you wear 100 times costs $1.20 per use, while a $30 pair of trendy shoes worn only 3 times costs $10 per use. The more expensive item with a discount can actually be the better value in the long run.

Common Discount Mistakes to Avoid

Even experienced shoppers can fall prey to common discount mistakes and retailer tactics that make deals appear better than they are. Being aware of these pitfalls helps you keep more money in your pocket and make purchasing decisions based on genuine value rather than perceived savings.

Pricing Traps

•
Inflated "Original" Prices:
Some retailers raise prices before a sale so the discount percentage looks larger while the actual sale price is close to what the item normally sells for
•
Anchoring Effect:
Seeing a high original price makes the sale price feel like a bargain, even if the sale price is still above market value for similar products
•
"Up to" Claims:
Ads saying "up to 70% off" may have only a handful of items at that maximum discount while most items are discounted by 10–20%

Shopping Mistakes

•
Buying Just Because It's on Sale:
A 50% discount saves you nothing if you wouldn't have bought the item at any price — spending $50 on something you don't need is not "saving $50"
•
Ignoring Total Cost:
Free shipping thresholds can lead you to add unnecessary items, and subscription "discounts" commit you to long-term spending
•
Assuming Stacked = Added:
Two 30% discounts are not 60% off — they are 51% off. Always calculate the actual effective discount to avoid overestimating your savings

The best protection against discount mistakes is to always know the actual market value of what you are buying. Research prices across multiple retailers, check price history, read reviews, and give yourself a cooling-off period before making large purchases. A genuine good deal will still be available tomorrow — and if it is not, another one will come along. The money you save by avoiding impulse purchases driven by artificial urgency and exaggerated discounts far outweighs the occasional missed sale on something you truly needed.

Frequently Asked Questions

How do I calculate a percentage discount?

To calculate a percentage discount, multiply the original price by the discount percentage divided by 100. For example, 25% off a $80 item: $80 × 0.25 = $20 discount, so the sale price is $80 − $20 = $60. You can also calculate the sale price directly by multiplying the original price by (1 − discount/100).

What is a double or stacked discount?

A double (or stacked) discount applies two percentage discounts sequentially. The second discount is applied to the already-reduced price, not the original. For example, 20% off then 10% off a $100 item: first discount gives $80, then 10% off $80 gives $72. This is not the same as a single 30% discount, which would give $70.

How do I find the original price from a sale price?

To find the original price, divide the sale price by (1 − discount/100). For example, if an item costs $60 after a 25% discount: $60 ÷ (1 − 0.25) = $60 ÷ 0.75 = $80. The original price was $80.

Is sales tax calculated before or after the discount?

Sales tax is almost always calculated on the discounted (sale) price, not the original price. If an item is originally $100 with a 20% discount, the sale price is $80. With an 8% sales tax, you pay $80 × 1.08 = $86.40, not $100 × 1.08 = $108.

Why is 20% off plus 10% off not the same as 30% off?

Because the second discount is applied to the already-reduced price. With 20% off then 10% off a $100 item, you get $100 × 0.80 × 0.90 = $72. But 30% off gives $100 × 0.70 = $70. The stacked discounts result in an effective discount of 28%, not 30%. The order of the discounts does not matter — the result is the same either way.

How can I tell if a sale is actually a good deal?

Compare the final price to what you'd pay elsewhere, not just the discount percentage. A 50% off sale on an inflated price may still cost more than a competitor's regular price. Check price history tools, compare across retailers, and consider the item's value to you. Also watch for tricks like raising prices before a sale to make the discount appear larger than it truly is.

Additional Resources

Investopedia: Understanding Discounts Bankrate: How to Save Money FTC: Smart Shopping and Donating

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