Business
Discount Calculator
Enter the original price and the discount to see the sale price and the saving.
The formula
saving = price × discount ÷ 100
sale price = price − saving
Worked example
A $249.99 tool at 25% off
- 249.99 × 0.25 = 62.50 saved
- 249.99 − 62.50 = 187.49 to pay
Where this goes wrong
Adding stacked discounts together
An extra 20% off an item already reduced by 30% is not 50% off. The second discount applies to the already-reduced price: $100 becomes $70, then $56 — a real saving of 44%. Stacked percentages multiply, and they always come out smaller than their sum.
Questions
- How do I apply two discounts one after the other?
- Apply them in sequence, not by adding them. 20% off then 10% off is not 30% off: it leaves you paying 0.8 × 0.9 = 0.72, so 28% off. Run this calculator twice, using the first result as the second price.
- Does the discount apply before or after sales tax?
- In the United States, the discount is applied first and sales tax is charged on the reduced price. Enter the pre-tax price here, then add tax to the result.
- How do I find the original price from the sale price?
- Divide the sale price by 1 minus the discount as a decimal. A $187.49 item after 25% off started at 187.49 ÷ 0.75 = $249.99.