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How to Calculate a Discount
Shopping sales, Black Friday deals, and clearance events all use percentage discounts. Understanding how to calculate the final price helps you make smarter purchasing decisions and compare deals across stores.
The Discount Formula
To find the sale price after a discount:
Savings = Original Price × (Discount % / 100)
Sale Price = Original Price - Savings
For example, a $80 shirt at 25% off:
Savings = 80 × (25 / 100)
Savings = 80 × 0.25
Savings = $20.00
Sale price = 80 - 20 = $60.00
Stacking Discounts
Sometimes you get multiple discounts (e.g., 20% off plus an extra 10% coupon). These are applied sequentially, not added together:
Original: $100
After 20% off: $100 × 0.80 = $80
After extra 10% off: $80 × 0.90 = $72
Note: 20% + 10% ≠ 30% off
30% off would be: $100 × 0.70 = $70
The stacked discount gives you 28% off total, not 30%.
Finding the Original Price
If you know the sale price and discount percentage, you can work backwards:
Original Price = Sale Price / (1 - Discount % / 100)
For example, an item on sale for $45 after a 40% discount:
Original = 45 / (1 - 0.40)
Original = 45 / 0.60
Original = $75.00
Comparing Deals
When comparing two deals, always calculate the final price:
- Store A: $120 jacket at 30% off →
$120 × 0.70 = $84 - Store B: $100 jacket at 15% off →
$100 × 0.85 = $85
Store A is the better deal even though the sticker price is higher.
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Example
A $200 item at 35% off:
Savings = 200 × 0.35 = $70.00
Final price = 200 - 70 = $130.00
Frequently Asked Questions
How do I calculate a percentage discount?
Multiply the original price by the discount percentage divided by 100 to get the savings amount. Then subtract the savings from the original price to get the sale price. For example, 25% off $80: savings = $80 x 0.25 = $20, sale price = $80 - $20 = $60.
Do stacked discounts add up?
No. When you apply multiple discounts, each one is calculated on the already-reduced price. A 20% discount plus an extra 10% off results in a 28% total discount, not 30%. The second discount applies to the lower price, not the original.
How do I find the original price from a sale price?
Divide the sale price by (1 minus the discount rate as a decimal). For example, if an item costs $45 after a 40% discount: original = $45 / (1 - 0.40) = $45 / 0.60 = $75.
If you are calculating tips at a restaurant, check out our tip calculator. For business pricing decisions, our profit margin calculator helps you set prices based on your target margin.
Calculate Discounts in Notes Calculator
Notes Calculator understands natural percentage expressions, so you can type discounts the way you think about them:
# Black Friday Deals
original price = $200
// Percentage off
original price - 35%
// Stacked discounts
after first = original price - 20%
after second = after first - 10%
// What was the original price?
$45 is 40% off what
The syntax 200 - 35% gives you the discounted price directly. You can also use 10% off 200 for the same result. Variables let you compare multiple deals side by side — just change original price and all calculations update in real time.