Finance — Tool 03

Discount Calculator

Work out the final price and your savings from any percentage off, including stacked discounts and sales tax.

Discount calculatorPrice × (1 − d)
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Final price —
Original price
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You save
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Effective discount
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Tax
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How to use the discount calculator

  1. Enter the original price of the item.
  2. Enter the discount percentage or drag the slider.
  3. Optionally add an extra discount (applied after the first) and sales tax.
  4. Read the final price, how much you save and the effective discount.

Formula

Final price = Price × (1 − d₁) × (1 − d₂) × (1 + tax) You save = Price − price after discounts

Know the real price before you buy

“Up to 40% off”, “extra 15% at checkout”, “plus tax” — sale pricing is designed to be hard to do in your head. This calculator turns any combination into one clear number: what you’ll actually pay.

How the discount is calculated

A percentage discount scales the price down:

Sale price = Original price × (1 − discount ÷ 100)

For 25% off $120, the sale price is 120 × 0.75 = $90, so you save $30.

Stacked discounts

When a second discount is applied on top of the first, it works on the already-reduced price:

Step Price
Original $120.00
25% off $90.00
Extra 10% off $81.00

The total saving is $39, an effective discount of 32.5%, not 35%. The calculator shows this effective figure so you can compare “25% + 10%” deals against a flat 30% or 35% offer.

Adding sales tax

Tax is applied to the discounted price. At 8% tax, the $81.00 item above costs $87.48 at the register.

Shopping tips

  • Compare effective discounts, not headline numbers. Two stacked discounts are always worth less than their sum.
  • Watch the base price. A big percentage off an inflated “original” price may not be a deal. Check what the item usually sells for.
  • Percent off vs. amount off. A “$20 off $100” coupon is a 20% discount; on a $60 item it’s worth 33%. Use the percentage calculator to convert between them.

Frequently asked questions

How do I calculate a discount?

Multiply the original price by the discount percentage divided by 100 to get the amount saved, then subtract it from the original price. For 20% off $50, you save $10 and pay $40.

Is 20% off and then 10% off the same as 30% off?

No. Stacked discounts multiply, not add. 20% then 10% off is 0.8 × 0.9 = 0.72 of the price, an effective 28% discount rather than 30%.

Is sales tax applied before or after the discount?

In most places sales tax is charged on the discounted price, which is what this calculator does.

Can I use decimals?

Yes. Prices and percentages accept decimals, such as 12.5% off $79.99.