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Final price from two successive discounts

Convert each rate to the share it leaves behind, then multiply. For 200, 0.20 and 0.10 the result is 200 x 0.80 x 0.90 = 144.0.

The Formula

Final = Price x (1 - a) x (1 - b)

Convert each rate to the share it leaves behind, then multiply. For 200, 0.20 and 0.10 the result is 200 x 0.80 x 0.90 = 144.0.

SymbolMeaning
POriginal price
aFirst discount as a decimal
bSecond discount as a decimal

What Each Symbol Means

Pcurrency

Original price

The figure both discounts act on, indirectly. 200 in the standard case.

adecimal

First discount as a decimal

20% enters as 0.20, leaving the survival factor 0.80.

bdecimal

Second discount as a decimal

10% enters as 0.10, leaving the survival factor 0.90, and it acts on the reduced price.

See It Worked With Real Numbers

A formula on its own does not tell you which number goes where. The how to calculate stacked discounts page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.

Where This Formula Appears

This equation is the working core of How To Calculate Stacked Discounts, filed under Everyday Life. Every number the guide produces comes from substituting into this one line.