How do I calculate a percentage discount?

Multiply the original price by the discount percentage divided by 100, then subtract from the original. Formula: Final Price = Original Price × (1 − Discount% ÷ 100). For example, $80 with 25% off: $80 × 0.75 = $60.

How do I find the discount percentage from two prices?

Subtract the sale price from the original price, divide by the original, and multiply by 100. Formula: Discount% = ((Original − Sale) ÷ Original) × 100. Example: ($100 − $75) ÷ $100 × 100 = 25%.

How do I find the original price before a discount?

Divide the sale price by (1 minus the discount percentage divided by 100). Formula: Original = Sale Price ÷ (1 − Discount% ÷ 100). Example: $60 after 25% off → $60 ÷ 0.75 = $80.

Do stacked discounts add up?

No. Stacked discounts multiply, they do not add. A 20% discount followed by 10% off is NOT 30% off. Instead: $100 × 0.80 × 0.90 = $72, which is a 28% total discount. The second discount applies to the already-reduced price.

What is a double or cascading discount?

A cascading (double) discount applies two percentage discounts sequentially. The second discount is applied to the price after the first discount, not the original. This always results in a smaller total discount than simply adding the two percentages together.

How do I calculate a triple discount?

Apply each discount sequentially: Final = Original × (1 − D1/100) × (1 − D2/100) × (1 − D3/100). For example, 20% + 10% + 5% on $100: $100 × 0.80 × 0.90 × 0.95 = $68.40, which is a 31.6% effective discount, not 35%.

Is "Buy 2 Get 1 Free" a 33% discount?

Yes, effectively. When you buy 3 items but only pay for 2, you save 1 out of 3 item prices, which equals approximately 33.3% off the total. However, this only applies when buying in multiples of 3.

Is "Buy 1 Get 1 Free" a 50% discount?

Yes, BOGO (Buy One Get One Free) is effectively a 50% discount when buying in multiples of 2. You pay for 1 item and get 2, so the effective price per item is half the original price.

How do I compare two different discount offers?

Calculate the final price for each offer and compare. A bigger percentage does not always mean a better deal if the original prices differ. Always compare the actual amount you pay, not just the discount percentage.

Is a bigger discount percentage always a better deal?

Not necessarily. A 40% discount on a $50 item ($30 final) is more expensive than a 20% discount on a $30 item ($24 final). Always compare final prices, not percentages alone, especially when original prices differ between stores.

What is the formula for discount?

There are three main formulas: (1) Discount Amount = Original × Discount%/100, (2) Final Price = Original − Discount Amount, (3) Discount% = ((Original − Sale) ÷ Original) × 100. Use the one that matches the values you know.

Does tax apply before or after a discount?

In most countries, sales tax is calculated on the discounted price (after the discount). However, some regions or specific situations may calculate tax on the full price before discount. The order matters because it changes the final amount you pay.

What is the difference between markup and discount?

Markup increases a cost price to set a selling price (e.g., 50% markup on $10 = $15 selling price). Discount reduces a selling price for the customer (e.g., 20% off $15 = $12). They are inverse operations used at different stages of pricing.

How do bulk or quantity discounts work?

Bulk discounts offer lower prices when buying larger quantities. Typically structured in tiers: buy 10+ get 5% off, buy 50+ get 10% off, buy 100+ get 15% off. The discount applies to the entire order once the quantity threshold is met.

What is an effective discount rate?

The effective discount rate is the actual total percentage saved compared to the original price, especially important with stacked discounts. For example, 20% then 10% off has an effective rate of 28%, not 30%.

How do I calculate savings on a sale?

Savings = Original Price − Sale Price. To find the percentage saved: Savings% = (Savings ÷ Original Price) × 100. For example, an item marked down from $80 to $56 saves you $24, which is a 30% savings.

Can I combine coupons with sale discounts?

It depends on the store policy. When allowed, coupons typically apply after the sale discount (stacked). A 20% sale plus a 10% coupon would be: Price × 0.80 × 0.90 = 28% total discount, not 30%.

What is the difference between a discount and a rebate?

A discount reduces the price at the time of purchase (you pay less upfront). A rebate is a partial refund after purchase (you pay full price, then receive money back later). Discounts are instant; rebates require a claim process.

How do I calculate price per unit with a discount?

Divide the total discounted price by the number of units. For example, 6 items at $10 each with 20% off: Total = $60 × 0.80 = $48, Price per unit = $48 ÷ 6 = $8 per item.

What is the maximum possible discount?

Mathematically, 100% is the maximum discount (free). In practice, discounts rarely exceed 70-80%. With stacked discounts, reaching 100% is theoretically impossible since each successive discount applies to a smaller base.

What is Black Friday and how do discounts work?

Black Friday is the day after US Thanksgiving (late November), marking the start of holiday shopping with major discounts. Stores offer 20-70% off various products. Always compare the "before" price to avoid inflated original prices that make discounts appear larger than they are.

How do clearance sales differ from regular sales?

Clearance sales aim to completely sell out discontinued or seasonal inventory, often offering deeper discounts (50-80% off) than regular sales (10-30%). Clearance items are typically final sale with limited sizes and styles available.

Discount Calculator

Calculate discounts instantly with 8 modes: percentage off, fixed amount, stacked discounts, BOGO deals, tax calculation, and deal comparison. For general percentage maths, see our percentage calculator. To calculate price margins or markups, try our margin calculator. For tax-inclusive pricing and VAT, use the VAT calculator.

Basic

Advanced

Original Price

Discount

How Discount Calculation Works

There are three core discount formulas. To find the sale price: Final Price = Original Price × (1 − Discount%/100). To find how much you save: Savings = Original Price × Discount%/100. To find what discount was applied: Discount% = ((Original − Sale) ÷ Original) × 100.

Stacked Discounts Explained

When two discounts apply in sequence, they multiply rather than add. A 20% discount followed by 10% off does not equal 30% off. The calculation is: $100 × 0.80 × 0.90 = $72, giving an effective discount of 28%. Each successive discount applies to the already-reduced price, making the total always less than the sum of individual percentages.

Buy X Get Y Free Deals

"Buy One Get One Free" (BOGO) is effectively a 50% discount per pair. "Buy 2 Get 1 Free" (3-for-2) gives roughly 33.3% off per trio. The effective discount only applies when buying in the required multiples. Partial quantities receive less benefit. Always calculate the price per item to compare these deals with regular percentage discounts.

How Tax Affects Your Discount

In most cases, sales tax is calculated after the discount is applied. This means you pay tax only on the discounted price, saving on tax too. However, some jurisdictions or situations may calculate tax on the full price before applying the discount, resulting in a higher final price. The order of operations matters.

How to Compare Discount Offers

To find the best deal, always compare final prices, not discount percentages. A 40% discount on a $50 item ($30 final) costs more than a 20% discount on a $35 item ($28 final). When items differ in quantity, calculate the price per unit. Our Compare Deals mode (M8) automates this comparison.

Common Discount Mistakes

Adding stacked discounts instead of multiplying (20% + 10% ≠ 30%)
Comparing percentages instead of final prices across different stores
Ignoring tax impact on the final price
Forgetting to calculate price per unit for bulk deals
Assuming "up to X% off" applies to every item in a sale

Example Calculations

Simple 25% Off

$80 jacket with 25% discount: $80 × 0.75 = $60. You save $20.

$15 Off Coupon

$15 off a $65 pair of shoes: $65 − $15 = $50. That is a 23.1% discount.

Double Discount

20% off + extra 10%: $100 × 0.80 × 0.90 = $72. Effective discount: 28%, not 30%.

BOGO on 6 Items

6 items at $10 each with BOGO: pay for 3 = $30. Effective price: $5/item (50% off).

30% Off + 8% Tax

$100 × 0.70 = $70 after discount. Tax: $70 × 0.08 = $5.60. Final: $75.60.

Best Deal Comparison

Store A: $100 at 25% off = $75. Store B: $90 at 20% off = $72. Store B wins by $3.

FAQ

How do I calculate a percentage discount?: Multiply the original price by the discount percentage divided by 100, then subtract from the original. Formula: Final Price = Original Price × (1 − Discount% ÷ 100). For example, $80 with 25% off: $80 × 0.75 = $60.
How do I find the discount percentage from two prices?: Subtract the sale price from the original price, divide by the original, and multiply by 100. Formula: Discount% = ((Original − Sale) ÷ Original) × 100. Example: ($100 − $75) ÷ $100 × 100 = 25%.
How do I find the original price before a discount?: Divide the sale price by (1 minus the discount percentage divided by 100). Formula: Original = Sale Price ÷ (1 − Discount% ÷ 100). Example: $60 after 25% off → $60 ÷ 0.75 = $80.
Do stacked discounts add up?: No. Stacked discounts multiply, they do not add. A 20% discount followed by 10% off is NOT 30% off. Instead: $100 × 0.80 × 0.90 = $72, which is a 28% total discount. The second discount applies to the already-reduced price.
What is a double or cascading discount?: A cascading (double) discount applies two percentage discounts sequentially. The second discount is applied to the price after the first discount, not the original. This always results in a smaller total discount than simply adding the two percentages together.
How do I calculate a triple discount?: Apply each discount sequentially: Final = Original × (1 − D1/100) × (1 − D2/100) × (1 − D3/100). For example, 20% + 10% + 5% on $100: $100 × 0.80 × 0.90 × 0.95 = $68.40, which is a 31.6% effective discount, not 35%.
Is "Buy 2 Get 1 Free" a 33% discount?: Yes, effectively. When you buy 3 items but only pay for 2, you save 1 out of 3 item prices, which equals approximately 33.3% off the total. However, this only applies when buying in multiples of 3.
Is "Buy 1 Get 1 Free" a 50% discount?: Yes, BOGO (Buy One Get One Free) is effectively a 50% discount when buying in multiples of 2. You pay for 1 item and get 2, so the effective price per item is half the original price.
How do I compare two different discount offers?: Calculate the final price for each offer and compare. A bigger percentage does not always mean a better deal if the original prices differ. Always compare the actual amount you pay, not just the discount percentage.
Is a bigger discount percentage always a better deal?: Not necessarily. A 40% discount on a $50 item ($30 final) is more expensive than a 20% discount on a $30 item ($24 final). Always compare final prices, not percentages alone, especially when original prices differ between stores.
What is the formula for discount?: There are three main formulas: (1) Discount Amount = Original × Discount%/100, (2) Final Price = Original − Discount Amount, (3) Discount% = ((Original − Sale) ÷ Original) × 100. Use the one that matches the values you know.
Does tax apply before or after a discount?: In most countries, sales tax is calculated on the discounted price (after the discount). However, some regions or specific situations may calculate tax on the full price before discount. The order matters because it changes the final amount you pay.
What is the difference between markup and discount?: Markup increases a cost price to set a selling price (e.g., 50% markup on $10 = $15 selling price). Discount reduces a selling price for the customer (e.g., 20% off $15 = $12). They are inverse operations used at different stages of pricing.
How do bulk or quantity discounts work?: Bulk discounts offer lower prices when buying larger quantities. Typically structured in tiers: buy 10+ get 5% off, buy 50+ get 10% off, buy 100+ get 15% off. The discount applies to the entire order once the quantity threshold is met.
What is an effective discount rate?: The effective discount rate is the actual total percentage saved compared to the original price, especially important with stacked discounts. For example, 20% then 10% off has an effective rate of 28%, not 30%.
How do I calculate savings on a sale?: Savings = Original Price − Sale Price. To find the percentage saved: Savings% = (Savings ÷ Original Price) × 100. For example, an item marked down from $80 to $56 saves you $24, which is a 30% savings.
Can I combine coupons with sale discounts?: It depends on the store policy. When allowed, coupons typically apply after the sale discount (stacked). A 20% sale plus a 10% coupon would be: Price × 0.80 × 0.90 = 28% total discount, not 30%.
What is the difference between a discount and a rebate?: A discount reduces the price at the time of purchase (you pay less upfront). A rebate is a partial refund after purchase (you pay full price, then receive money back later). Discounts are instant; rebates require a claim process.
How do I calculate price per unit with a discount?: Divide the total discounted price by the number of units. For example, 6 items at $10 each with 20% off: Total = $60 × 0.80 = $48, Price per unit = $48 ÷ 6 = $8 per item.
What is the maximum possible discount?: Mathematically, 100% is the maximum discount (free). In practice, discounts rarely exceed 70-80%. With stacked discounts, reaching 100% is theoretically impossible since each successive discount applies to a smaller base.
What is Black Friday and how do discounts work?: Black Friday is the day after US Thanksgiving (late November), marking the start of holiday shopping with major discounts. Stores offer 20-70% off various products. Always compare the "before" price to avoid inflated original prices that make discounts appear larger than they are.
How do clearance sales differ from regular sales?: Clearance sales aim to completely sell out discontinued or seasonal inventory, often offering deeper discounts (50-80% off) than regular sales (10-30%). Clearance items are typically final sale with limited sizes and styles available.