How do I calculate a discount?

Multiply the original price by the discount percentage, then subtract from the original price. For example, a 20% discount on $50 saves $10, giving a final price of $40.

How do I find what percentage discount was applied?

Divide the amount saved by the original price, then multiply by 100. For example, if an item dropped from $80 to $60, the saving is $20, and 20/80 × 100 = 25% discount.

What is the difference between discount and sale price?

The discount is the amount (or percentage) deducted from the original price. The sale price is the final amount you pay after the discount has been applied.

Can I stack discounts?

When discounts are stacked, they are usually applied sequentially, not added together. A 20% discount followed by a 10% discount is not 30% — it is 28% off the original price.

Discount Calculator — Final Price & Savings

Original Price

Discount

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Final Price

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Amount Saved

About the Discount Calculator

A discount calculator finds the final price after applying a percentage reduction. It is used in retail, e-commerce, and financial analysis to quickly determine sale prices, compare deal values, and calculate savings in currency terms. The same formula applies whether you are calculating a shop discount, a trade price reduction, or a negotiated contract rate.

Discount formulas

Final price — Original × (1 − Discount% ÷ 100)
Saving amount — Original × (Discount% ÷ 100)
Discount % from two prices — (Original − Sale) ÷ Original × 100
Original price from discounted price — Discounted ÷ (1 − Discount% ÷ 100)

Do sequential discounts add up?

Two 10% discounts applied sequentially do not equal 20%. After the first 10% off a £100 item you pay £90, then 10% off £90 = £81 — an effective 19% total. To calculate the combined discount: multiply (1 − d1) × (1 − d2): 0.9 × 0.9 = 0.81 = 19% total reduction.

Discount strategies in retail

Different discount structures achieve different commercial goals. A percentage discount is straightforward and easily compared. A fixed cash amount ("£10 off") is perceived as more valuable on lower-priced items. A "buy one get one free" (BOGOF) is equivalent to a 50% discount but moves twice as much inventory. Tiered discounts (10% off 2, 15% off 3+) encourage larger basket sizes.

Percentage discount — "20% off" is easily compared across different price points
Fixed amount — "£10 off" is perceived as more valuable than "10% off" on items under £100
BOGOF — buy one get one free is a 50% discount but requires buying two units
Tiered pricing — increasing discounts at volume thresholds encourages higher spend per transaction

Frequently Asked Questions

How do I calculate a percentage discount?

Multiply the original price by (1 minus the discount rate). For a 25% discount on 80: 80 x (1 - 0.25) = 80 x 0.75 = 60. The saving amount is 80 x 0.25 = 20.

How do I find the original price before a discount?

Divide the discounted price by (1 minus the discount as a decimal). If an item costs 68 after a 15% discount: 68 / 0.85 = 80 original price.

What is the difference between discount and markdown?

In retail, a discount is a temporary reduction (a sale) while a markdown is a permanent price reduction. Both use the same formula, but a markdown adjusts the reference price going forward whereas a discount applies only temporarily to the current price.

How do I calculate the discount percentage between two prices?

Subtract the sale price from the original, divide by the original, then multiply by 100. Formula: Discount% = (Original - Sale) / Original x 100. Example: from 120 to 90: (120-90)/120 x 100 = 25%.

Do two sequential discounts combine directly?

No. Two discounts compound rather than add. A 20% discount followed by a 10% discount gives 0.8 x 0.9 = 0.72, which is a 28% total reduction, not 30%. Apply the first discount to the original price, then the second discount to the already-reduced price.