How to Calculate Discounts
Calculating discounts is a fundamental skill for both shoppers and retailers. Whether you're trying to figure out how much you'll save during a sale or setting promotional pricing for your business, understanding discount math is essential.
The basic discount formula is simple: multiply the original price by the discount percentage (as a decimal), then subtract from the original price. For a $80 item at 25% off: $80 × 0.25 = $20 savings, so you pay $60.
This calculator handles three scenarios: finding the sale price from an original price and discount, calculating what discount percentage was applied, and working backwards to find the original price before a discount.
Stacking Multiple Discounts
When multiple discounts apply, the order matters and they don't simply add up. Two 20% discounts don't equal 40% off—they result in 36% total savings.
Here's why: Start with $100. First 20% off: $100 × 0.80 = $80. Second 20% off: $80 × 0.80 = $64. Total savings: $36 (36%), not $40.
| First Discount | Second Discount | Total Savings | Final Price |
| 10% | 10% | 19% | $81.00 |
| 20% | 10% | 28% | $72.00 |
| 20% | 20% | 36% | $64.00 |
| 25% | 25% | 43.75% | $56.25 |
| 30% | 20% | 44% | $56.00 |
| 40% | 20% | 52% | $48.00 |
| 50% | 20% | 60% | $40.00 |
| 50% | 50% | 75% | $25.00 |