Discount Calculator
Find the final sale price, total savings, stacked coupon combinations, and post-tax checkout totals instantly.
How Discount Calculations Work
Calculating the money saved and the final sale price is determined by the formula:
For deeper analysis and related planning, you can also explore our Percentage Calculator and Sales Tax Calculator.
Sale Price = Original Price - Discount Amount
Final Checkout Price = Sale Price + (Sale Price × Sales Tax %)
Why Stacked Coupons Do Not Simply Add Up
A frequent consumer misconception is that a 30% store sale combined with a 20% coupon equals 50% off. In retail point-of-sale systems, discounts are applied sequentially:
- On a $100 item, the first 30% discount reduces the price to $70.00 ($30 saved).
- The 20% coupon is then applied to the new $70 price: 20% of $70 = $14.00 saved.
- The pre-tax price is $56.00, representing a total savings of $44.00, which is an effective discount of 44%, not 50%.
Frequently Asked Questions
How is a percentage discount calculated?
Multiply the original price by the discount percentage divided by 100 to get the savings. Then subtract the savings from the original price to get the final sale price.
How do stacked (double) discounts work?
In retail, stacked discounts do not add together directly. For example, a 20% discount followed by an extra 10% coupon results in paying 80% × 90% = 72% of the original price, which equals an effective 28% discount, not 30%.
Is sales tax applied before or after the discount?
In almost all jurisdictions, retail sales tax is applied to the discounted price (the actual amount you pay), rather than the original manufacturer suggested retail price.
How do I calculate a discount in my head?
Find 10% of the price by moving the decimal point one place to the left. For a 20% discount, double that number. For 15%, take the 10% value and add half of it.
What is the difference between markup and discount?
A discount is deducted from an existing selling price to lower it, whereas a markup is added to a product's wholesale cost to establish the retail selling price. For profit planning, use our Markup Calculator.