Discount Calculator

A discount is a reduction from a product's regular or list price. Retailers use them to clear inventory, attract shoppers during holidays and back-to-school season, reward loyal customers and move products that are about to be replaced. Discounts usually take one of two forms: a percentage off, such as 15% off, or a fixed amount off, such as $10 off. A 15% discount on a $59.99 item saves about $9.00, so the sale price is $50.99.

Formula

Price after discount = price × (1 − percent off ÷ 100)

Amount saved

price × percent off ÷ 100

Original price

sale price ÷ (1 − percent off ÷ 100)

For a fixed-amount discount, subtract the dollar amount from the price instead.

Which form gives the bigger saving depends on the price. A percentage discount grows with the price, so it is worth more on expensive items, while a fixed amount is worth more on cheap ones. A 20% coupon beats a $10 coupon on anything priced above $50, and the $10 coupon wins below that. When a store offers both, compare them on the actual price before choosing.

Stacked discounts do not simply add up. Taking 20% off and then an extra 10% off the sale price is 28% off in total, not 30%, because the second discount applies to a smaller number: the price is multiplied by 0.8 and then by 0.9, leaving 72%. To combine stacked percentages, multiply the remaining fractions and subtract from one. Buy-one-get-one offers are another variation: "buy one, get one 50% off" on two items of the same price is the same as 25% off each.

Sales tax is generally charged on the discounted price for store discounts and coupons a retailer funds, while manufacturer coupons may be taxed on the full price in some states. Always check the final price at the register.

Some "discounts" are less than they appear. A sale price measured against an inflated "compare at" price may be no bargain at all, and a percentage off a product you would not otherwise buy is spending, not saving. Tracking prices over time, comparing with other sellers and setting a budget before shopping help separate real deals from marketing. Working backward is useful too: if a jacket is $84 after 30% off, the original price was $84 ÷ 0.7 = $120, which lets you check whether the advertised regular price is accurate.

Frequently asked questions