Discount Calculator
Calculate sale prices, savings, and discounts for better shopping decisions and budget planning.
Discount Calculator
Select Calculation Method
Understanding Discounts and Sales
Discounts are reductions in the original price of an item, typically expressed as a percentage. Understanding how discounts work can help you make better shopping decisions and save money.
Types of Discounts
There are several common types of discounts you might encounter while shopping:
- Percentage Discounts: The most common type, where a percentage of the original price is deducted (e.g., 20% off).
- Fixed Amount Discounts: A specific dollar amount is taken off the original price (e.g., $10 off).
- Buy One Get One (BOGO): Purchase one item and receive another for free or at a discount.
- Volume Discounts: Reduced prices when purchasing multiple items (e.g., 3 for $10).
- Seasonal Sales: Discounts offered during specific times of the year, like Black Friday or end-of-season clearances.
Discount Strategies for Shoppers
Smart shoppers can maximize their savings with these strategies:
- Layering Discounts: Combining a coupon with an already discounted item. Check if a store allows "stacking" discounts.
- Price Matching: Many retailers will match competitors' lower prices if you provide evidence.
- Timing Purchases: Learning the sales cycles for different products can help you buy at the lowest prices.
- Calculating the True Value: Sometimes a "sale" isn't really a good deal if the original price was inflated.
Understanding Sales Tax
Sales tax is applied after discounts in most cases. The tax rate varies by location:
- The sales tax is calculated on the post-discount price, not the original price.
- Some states don't have sales tax, while others have rates above 9%.
- Local municipalities may add their own taxes on top of state rates.
- Certain items like groceries or medications may be exempt from sales tax in some areas.
Shopping Tip
When comparing percentage discounts with fixed dollar amount discounts, calculate the effective percentage of the fixed discount to determine which is better. For example, $10 off a $50 item is equivalent to a 20% discount.
Frequently Asked Questions
How do I calculate a discount?
To calculate a discount, multiply the original price by the discount percentage (expressed as a decimal), then subtract that amount from the original price. For example, for a 25% discount on a $100 item: $100 × 0.25 = $25 (the discount amount), and $100 - $25 = $75 (the sale price). Alternatively, you can multiply the original price by (1 - discount percentage as decimal): $100 × (1 - 0.25) = $100 × 0.75 = $75.
Which is better: 20% off or $20 off?
Whether 20% off or $20 off is better depends on the original price of the item. For items priced above $100, a 20% discount is better than $20 off (because 20% of anything over $100 is more than $20). For items under $100, the fixed $20 discount is better. For example, on a $200 item, 20% off saves you $40, while on a $50 item, $20 off saves you more than the 20% discount (which would only be $10).
How do I find the original price when I only know the sale price and discount percentage?
To find the original price when you know the sale price and discount percentage, divide the sale price by (1 - discount percentage as a decimal). For example, if an item costs $60 after a 25% discount: $60 ÷ (1 - 0.25) = $60 ÷ 0.75 = $80 original price. Our calculator can do this calculation for you automatically using the "Find Original Price" mode.
How do I calculate multiple discounts applied to the same item?
When multiple discounts are applied sequentially, they don't simply add up. Instead, each discount is applied to the price after the previous discount. For example, if a $100 item gets a 20% discount followed by an additional 10% discount: First discount: $100 × (1 - 0.20) = $80, Second discount: $80 × (1 - 0.10) = $72. The total effective discount is 28%, not 30%. To calculate the combined effect of multiple discounts, multiply (1 - discount1) × (1 - discount2) × etc., then subtract from 1.
Is sales tax calculated on the original price or the discounted price?
In most jurisdictions, sales tax is calculated on the final sale price after all discounts have been applied, not on the original price. For example, if a $100 item is discounted to $75, and the sales tax rate is 8%, the tax would be calculated as $75 × 0.08 = $6, making the total price $81. Our calculator includes the option to add sales tax to your discount calculations for a more accurate total price estimate.
Need More Utility Tools?
Explore our full range of utility calculators to simplify your everyday calculations.