Finance

Discount Calculator

Turn a percent-off sign into a real number. Enter the original price and the discount to get the sale price and the money saved — add a second discount when the promotion stacks.

Estimates only. This tool is provided for educational purposes and is not financial advice. It models the figures you enter — it does not know your credit terms, local taxes, or fees. Talk to a licensed adviser before making a decision.

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How to use the discount calculator

  1. Enter the Original price — the full price before any reduction.
  2. Enter the Discount percentage shown on the tag or in the cart.
  3. Add a Second discount only if the promotion stacks (for example an extra 10% at checkout).
  4. Read the final price and the money saved. Anything you change recalculates immediately.

Worked example

A jacket listed at $120 with 25% off drops to $90, a saving of $30. With an extra 10% at checkout the price becomes $81 — the total saving is $39, an effective 32.5% off, not 35%.

The discount formulas

Sale price = Original × (1 − rate) · Saving = Original × rate

Stacked price = Original × (1 − r₁) × (1 − r₂)

Stacked discounts are not added

25% then 10% is not 35% off. The second discount applies to the already-reduced price, so the effective rate is 1 − (0.75 × 0.90) = 32.5%. Retailers lean on this gap: "extra 10% off" sounds bigger than it is.

Working backwards

If you know the original and the sale price, the rate is (Original − Sale) ÷ Original. A $120 item selling at $90 is 30 ÷ 120 = 25% off — handy for checking a claim at the till.

Discounts worth pausing over

  • "Up to 70% off" — the headline rate applies to a handful of items. Check the tag on the thing you actually want.
  • Percent off vs dollars off — on cheap items a flat $10 beats 20%; on expensive ones the percentage wins. Run both.
  • Bundle the stack correctly. A coupon and a sale usually multiply, but some retailers add them. The difference is real money.
  • Watch the reference price. A "50% off" tag on an inflated original price is not a saving at all.
  • Compare the final price, not the rate. Two stores, two rates — the lower final number is the better deal.

Frequently asked questions

How do I calculate a percent-off price?

Multiply the original price by one minus the rate. 25% off $120 is 120 × 0.75 = $90. Enter both figures above and the calculator returns the same result.

Do two discounts add up?

No. Stacked discounts multiply. 25% then 10% gives an effective 32.5% off, not 35%, because the second discount applies to the reduced price.

How do I find the discount percentage from two prices?

Divide the saving by the original price. If something drops from $120 to $90, the saving is $30 and 30 ÷ 120 = 25% off.

Is a 20% discount the same as a 20% markup reversed?

No. A 20% discount takes 20% off the higher price; removing a 20% markup means dividing by 1.2, which is a 16.7% reduction. The two are not symmetric.

What is the best single discount?

The one that produces the lowest final price. Convert every offer to a final price before comparing, especially when one is a percentage and the other a flat amount.

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