Triple Discount Calculator
Enter an original price and up to three successive discounts to instantly see the final price, the savings at each step, the total amount saved, and the true combined discount rate. Each discount applies to the price already reduced by the previous one, so the result is never as simple as adding the three percentages together.
Formula
Worked example
A jacket originally priced at $200 receives three successive discounts: 20%, 10%, and 5%. After the first: $200 x 0.80 = $160. After the second: $160 x 0.90 = $144. After the third: $144 x 0.95 = $136.80. Total savings: $63.20. Effective combined rate: $63.20 / $200 = 31.60%, well below the 35% you would get by adding the three rates.
How triple discounts work
A triple discount applies three percentage reductions one after another, where each reduction is calculated on the price remaining after the previous discount, not on the original price. This is sometimes called successive discounting or a chain discount. Retailers, wholesalers, and B2B suppliers all use this structure. A common real-world example is a trade catalog that lists a trade discount, a volume discount, and a promotional discount applied in sequence. Because each later discount hits a smaller base, the combined effect is always less than simply adding the three percentages together. The formula is: Final Price = Original Price x (1 - r1) x (1 - r2) x (1 - r3), where r1, r2, and r3 are each discount expressed as a decimal.
Effective combined rate vs. the simple sum
The effective combined discount tells you what single flat percentage would reduce the original price to the same final price. It is calculated as: Effective rate = 1 - (1 - r1) x (1 - r2) x (1 - r3). Three discounts of 10% each, for example, look like a 30% total discount on paper, but the effective rate is only about 27.1%. This gap grows as the discounts get larger. Knowing the effective rate helps you compare stacked promotional offers against straight flat discounts so you can spot which deal is genuinely better.
Where triple discounts appear in practice
Triple discounts are common in trade and wholesale pricing. A supplier might apply a trade discount for dealers, a quantity discount for orders above a threshold, and a prompt-payment discount for invoices settled within 10 days. Retail markdown sequences follow the same logic: an item first marked down for a seasonal sale, then an additional clearance markdown, and finally a loyalty-card reduction at checkout. Understanding that these three cuts compound means you can quickly calculate the true saving rather than being misled by advertising that lists the three rates separately.
Tips for getting the most from stacked discounts
Order matters slightly when discounts are different sizes. A larger discount applied first reduces the base more, which means the later smaller discounts save a slightly different nominal amount, though the effective combined rate is the same regardless of order. If you are negotiating, consider asking for a single larger flat discount rather than three small ones, since a flat 30% discount saves more than three 10% discounts (which combine to only 27.1%). Also note that coupons applied before a percentage discount have more value than coupons applied after, because a fixed cash coupon subtracts from the base on which subsequent percentage discounts are calculated.
Effective discount: stacked vs. flat
| Each discount | Simple sum | Effective combined rate | You actually save |
|---|---|---|---|
| 5% | 15% | 14.26% | 14.26% of original |
| 10% | 30% | 27.10% | 27.10% of original |
| 15% | 45% | 38.59% | 38.59% of original |
| 20% | 60% | 48.80% | 48.80% of original |
| 25% | 75% | 57.81% | 57.81% of original |
| 30% | 90% | 65.70% | 65.70% of original |
| 33.33% | 100% | 70.37% | 70.37% of original |
When each discount is identical, the true combined rate is always less than the sum. Here is how three equal discounts compare.
Frequently asked questions
Does the order of the discounts matter?
The effective combined rate and the final price are the same regardless of which discount you apply first. This is because multiplication is commutative: (1 - r1) x (1 - r2) x (1 - r3) gives the same result no matter how you arrange the three factors. The intermediate prices at each step will differ, but the end result will not.
Why is the effective discount less than the sum of the three rates?
Each successive discount applies to an already-reduced price, not to the original. So the second discount saves less money in absolute terms than if it had been applied to the full price, and the third saves even less. The effective rate captures this compounding effect and is always lower than adding the three percentages, unless one of the rates is zero.
Is a triple discount the same as one big discount?
Only by coincidence. Three discounts of 20%, 10%, and 5% combine to an effective rate of about 31.6%, not 35%. If a retailer offered a flat 35% discount instead, you would save more. Always calculate the effective combined rate before assuming stacked promotions are equivalent to a single headline number.
Can I use this calculator if I only have two discounts?
Yes. Leave the third discount field at 0% (or blank). The calculator treats a 0% discount as no reduction, so you get the correct result for two successive discounts. The same applies if you have only one discount.
What if one discount is more than 100%?
A discount above 100% would make the price negative, which is not a valid retail situation. The calculator only accepts values from 0% to 100% for each discount field. If you enter a value above 100%, the field will not produce a result.
How do I find the original price if I only know the final price and the discounts?
Divide the final price by the product of the three multipliers: Original = Final / ((1 - r1) x (1 - r2) x (1 - r3)). For example, if the final price is $136.80 after discounts of 20%, 10%, and 5%, then: $136.80 / (0.80 x 0.90 x 0.95) = $136.80 / 0.684 = $200.