Discount Calculator
Quickly figure out the exact final price of an item after single or stacked percentage discounts and local sales tax.
Calculator Overview
How Stacked Discounts Work
Retailers often trick consumers with stacked discounts. If a jacket is $100 and the store offers "50% off, plus an extra 20% off," the total discount is not 70%.
First, the 50% is applied ($100 - $50 = $50). Then, the 20% is applied to the new price ($50 - 20% = $40). You saved 60% total, not 70%.
The Mathematics
The algorithm calculates the final price sequentially, ensuring taxes are applied only to the final discounted basis:
Price 1 = Original × (1 - Discount₁)
Price 2 = Price 1 × (1 - Discount₂)
Final = Price 2 + (Price 2 × Tax Rate)
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Frequently Asked Questions
How do you calculate a percentage discount?
To calculate a discount, convert the percentage to a decimal (e.g., 20% becomes 0.20), multiply it by the original price to find the savings amount, and then subtract that savings amount from the original price.
How do 'stacked' or double discounts work?
When a store offers '20% off, plus an extra 10% off', it does NOT equal 30% off. The first discount is applied to the original price. Then, the second discount is applied to the NEW, lower price. Our calculator handles this complex math automatically.
Is sales tax applied before or after the discount?
In almost all jurisdictions, sales tax is applied AFTER the discount has been deducted. You only pay tax on the final agreed-upon sale price of the item, not its original retail price.
What is a 'markup' versus a 'discount'?
A discount reduces the price of an item for the consumer. A markup is used by businesses to increase the price of an item above its wholesale cost to ensure they make a profit.
How do I calculate the original price if I only know the discounted price?
If you bought an item for $80 after a 20% discount, you divide the final price ($80) by the remaining percentage you paid (80%, or 0.80). $80 / 0.80 = $100 original price.