Percentage Discount Calculator
Enter an original price and a discount percentage to find out how much you save and what you pay. Flip the calculator into reverse mode to find the discount percentage from two prices, or to recover the original price from the discounted one. Add a second stacked discount and optional sales tax for a complete checkout total.
How percentage discounts work
A percentage discount reduces a price by a fixed fraction of the original. If a jacket is listed at $120 and the discount is 25%, the saving is $120 x 0.25 = $30, so the final price is $90. The formula is straightforward: final price = original price x (1 - discount / 100). Retailers use this format because the saving scales with the price, so the same percentage feels meaningful across low- and high-value items alike.
Stacked discounts: why they are not additive
When two discounts are applied in sequence, the second one acts on the reduced price, not the original. A 20% sale followed by an extra 10% coupon does not equal 30% off: it yields 20% + 10% x (1 - 0.20) = 20% + 8% = 28% off. The combined multiplier is (1 - 0.20) x (1 - 0.10) = 0.72, meaning 28% total savings. This calculator shows the intermediate price after the first discount and the effective combined discount after both, so you can see exactly what each tier contributes.
Reverse calculations: finding the discount or the original price
Switch the calculator to reverse mode to answer two common shopping questions. If you see a sale price and the original price, the discount rate is simply (original - final) / original x 100. If you only have the sale price and the stated discount percentage, the original price is final / (1 - discount / 100). Both approaches are useful for verifying whether an advertised discount is accurate, since some retailers inflate the reference price before applying the markdown.
Sales tax and the total checkout cost
In most jurisdictions, sales tax is calculated on the price after the discount, not the original price. Enable the sales tax toggle to see your full checkout total. For example, a $100 item discounted 20% to $80, with 8.5% sales tax, costs $80 x 1.085 = $86.80 at the register. Knowing this figure in advance helps with budget planning and avoids surprises at checkout.
Typical retail discount levels and what they signal
| Discount range | Typical context | Watch out for |
|---|---|---|
| 1% - 4% | Loyalty or rounding discounts | Often not worth a special trip |
| 5% - 14% | Introductory or member pricing | Check whether the base price was inflated |
| 15% - 24% | Seasonal promotions | Good for planned purchases |
| 25% - 39% | Clearance or flash sales | Limited stock or older models |
| 40% - 59% | End-of-line or heavy clearance | Inspect condition carefully |
| 60% + | Liquidation or loss-leader pricing | Verify the original price was genuine |
A rough guide to how discount percentages are used in retail and what to look for.
Frequently asked questions
What is the formula for a percentage discount?
Discount amount = original price x (discount / 100). Final price = original price - discount amount, or equivalently, original price x (1 - discount / 100). For example, 30% off $50 gives a discount of $15 and a final price of $35.
How do I calculate the original price from a discounted price?
Divide the final price by (1 - discount / 100). If you paid $63 after a 10% discount, the original price was $63 / 0.90 = $70. Switch the calculator to 'Original price' mode and it does this step for you.
How do stacked discounts work?
Each discount applies to the price remaining after the previous discount, not to the original price. A 20% discount followed by a 10% discount gives (1 - 0.20) x (1 - 0.10) = 0.72, which is a 28% effective reduction, not 30%. Always check the effective combined percentage before deciding whether a stacked offer is better than a single larger discount.
Is sales tax applied before or after the discount?
In virtually all jurisdictions, sales tax is calculated on the final selling price after the discount. A store cannot legally charge tax on an inflated pre-discount price. So a 20% discount on $100 gives an $80 taxable price, and 8% tax on that is $6.40, for a total of $86.40.
How do I find the discount percentage from two prices?
Discount % = (original price - final price) / original price x 100. If an item was $120 and now costs $90, the discount is (120 - 90) / 120 x 100 = 25%. Use the 'Discount %' reverse mode in this calculator to get the same result instantly.