Discount Calculator

How to calculate a discount

The discount formula is: Sale price = Original price × (1 − Discount% ÷ 100). The amount saved is: Saving = Original price − Sale price.

Worked example: 20% off $80

Sale price = $80 × (1 − 20 ÷ 100) = $80 × 0.80 = $64. Saving = $80 − $64 = $16.

Common discount reference

Discount	You save (on $100)	Sale price
10% off	$10.00	$90.00
20% off	$20.00	$80.00
25% off	$25.00	$75.00
30% off	$30.00	$70.00
50% off	$50.00	$50.00

Stacking discounts

When two discounts are applied in sequence — for example 20% off, then an extra 10% off — they do not combine to 30%. Apply each in order: $100 × 0.80 = $80, then $80 × 0.90 = $72. The effective combined discount is 28%, not 30%.

Discount + sales tax

If you’re shopping somewhere that charges sales tax, the tax is applied to the discounted price — not the original. A $100 item at 20% off is taxed on $80, not $100. The discount + tax calculator handles both steps in one calculation and shows the exact checkout total. For the reverse — finding how much you saved after tax — the percent off calculator can work backwards from any two values.

Discount vs markdown vs clearance

Retailers use these terms interchangeably, but they all apply the same arithmetic: reduce the price by a percentage of the original. A 40% markdown on a $150 item is the same calculation as 40% off: $150 × 0.60 = $90. The profit margin calculator is useful for checking whether a discounted price still covers cost and generates a healthy margin.

Finding the original price from a discounted price

If you know the sale price and the discount percentage and need the original: Original = Sale price ÷ (1 − Discount% ÷ 100). Paid $48 for an item at 20% off: $48 ÷ 0.80 = $60 original price. This is a common point of confusion — many people add 20% to $48 ($57.60), which is wrong because the discount was applied to the larger original price, not the reduced one.

Trade discounts vs consumer discounts

A trade discount is a reduction a supplier offers to a wholesaler or retailer, typically 30–50% off the list price (also called the MSRP). The retailer then marks the product up for the end consumer. A consumer discount is the reduction a retailer offers to a shopper, usually a smaller percentage. If you buy wholesale at 40% off MSRP and then sell at 20% off MSRP during a sale, you need to check that your margin still covers operating costs — the markup calculator handles the full cost-to-price calculation.

Bulk discounts and tiered pricing

Many suppliers offer stepped discounts: 5% off for 10+ units, 10% off for 50+ units, 15% off for 100+ units. To find the total cost at any tier, apply the discount to the unit price first, then multiply by quantity. The break-even point between tiers — where the per-unit saving from ordering more offsets the larger upfront cost — is worth calculating before committing to a larger order. For service-sector discounts such as restaurant bills, the tip calculator handles the combined total after a discount and gratuity in one step.

Frequently asked questions

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