Discount calculator

The discount formula

Savings = original price × discount ÷ 100 and final price = original price − savings. A 25% discount on 80 saves 20, so the final price is 60. The calculator also accepts a second discount, such as a coupon on top of a sale.

Why two discounts don't add up

The second discount is applied to the price that is left after the first. 20% off followed by 10% off is not 30% — it is 28%, because 10% of the already-reduced price is less. The “Total discount” result shows the real combined percentage.

Discounts on invoices

• Show the discount as its own line so the client can see the value they are getting.
• Apply it before sales tax in most cases, so tax is charged on the discounted price. Run the final number through the sales tax calculator.
• Early-payment discounts such as “2/10 Net 30” reward quick payment. Combine with the due date calculator to set both dates.
• Know your floor. Before discounting, check your margin with the profit margin calculator so a sale does not turn into a loss.

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, then subtract it from the original price. A 20% discount on 80 saves 16, so the final price is 64.

How do I find the discount percentage from two prices?

Subtract the sale price from the original price, divide by the original price and multiply by 100. A price that drops from 50 to 40 is a 20% discount.

Is 20% off then 10% off the same as 30% off?

No. The second discount applies to the reduced price, so the total is 28%.

Should the discount come before or after tax?

Usually before. Tax is charged on the discounted price, but rules differ for manufacturer coupons, so check your state's guidance.