Discount Calculator

For Shoppers

For Businesses

Percentage Discounts

The most common discount type. A percentage (like 20%) is deducted from the original price. The reduction scales with the item's price, making it versatile for various price points.

Fixed Amount Discounts

A specific dollar amount (like $10) is subtracted from the original price. These work well for promoting a specific savings amount and are often more effective for lower-priced items.

Bulk or Volume Discounts

Discounts that increase with purchase quantity. These incentivize customers to buy more and help businesses move inventory faster while increasing average order value.

Multi-Buy Offers

Special pricing for multiple items (like "Buy One Get One Free" or "3 for $10"). These create perception of value and can help move specific inventory quickly.

BOGO Deals (Buy One, Get One)

When purchasing one item, you receive another item for free or at a reduced price. Effectively a 50% discount on both items for BOGO Free.

Example: "BOGO 50% off" means the second item costs half price.

Convert to the Same Metric

When comparing percentage discounts to fixed amounts, convert both to either dollar amounts or percentages. For a $100 item, 20% off ($20 savings) is less than a $25 fixed discount.

Beware of Price Inflation

Some retailers raise prices before offering discounts. Compare the discounted price to the regular market price of the item, not just the "original" price listed.

Consider Stackable Discounts

When multiple discounts can be combined (e.g., 20% off plus a $10 coupon), the order of application matters. Percentage discounts applied first will result in greater savings on higher-priced items.

Factor in Additional Costs

Include taxes, shipping fees, and other charges when comparing total costs. A 15% discount with free shipping might be better than a 20% discount with high shipping fees.

Calculating Sale Price from Percent Discount

Example: For a $100 item with 25% off:
$100 × (1 - 25/100) = $100 × 0.75 = $75

Calculating Sale Price from Amount Off

Example: For a $100 item with $30 off:
$100 - $30 = $70

Finding the Discount Percentage

Example: If original price is $80 and sale price is $60:
($80 - $60) / $80 × 100 = $20 / $80 × 100 = 25%

Calculating the Discount Amount

Example: For a $200 item with 15% off:
$200 × (15/100) = $200 × 0.15 = $30

Q: What's the difference between discount percentage and discount amount?

A percentage discount reduces the price by a proportion of the original price (e.g., 20% off), while a fixed amount discount subtracts a specific dollar value (e.g., $10 off). Percentage discounts scale with the item price, while fixed discounts remain constant regardless of price.

Q: How do I calculate the original price if I only know the sale price and discount percentage?

To find the original price, divide the sale price by (1 - discount percentage as a decimal). For example, if an item costs $80 after a 20% discount, the original price was $80 ÷ (1 - 0.2) = $80 ÷ 0.8 = $100.

Q: Should tax be calculated before or after the discount?

In most regions, sales tax is applied after discounts. This means the tax is calculated on the post-discount price, not the original price. This calculator follows this standard practice, but you should check your local tax regulations as they can vary.

Q: How can I calculate stacked discounts?

For multiple percentage discounts, you can't simply add them together. Instead, apply them sequentially. For example, if you have a 20% discount followed by an additional 10% off, first calculate the price after the 20% discount, then apply the 10% to that amount. The effective discount is about 28%, not 30%.

Q: What is a good discount percentage for retail items?

Typical retail discounts range from 10% for small promotions to 50% for major sales. The "sweet spot" is often 20-30%, which is significant enough to motivate purchases without devaluing the product. However, optimal discount rates vary by industry, product type, and business goals.