Discount Calculator
Calculate sale prices and savings
How to Use This Calculator
Our discount calculator makes it easy to determine exactly how much you will pay and save on any purchase. Start by entering the original price of the item in the first field. This should be the full retail price before any discounts are applied, which you can find on the price tag, product listing, or receipt.
Next, enter the discount percentage being offered. If the store advertises "25% off," simply type 25 in the discount field. For convenience, use our quick-select buttons for common discount amounts like 10%, 20%, 25%, 30%, or 50% off. These buttons automatically fill in the percentage for you.
If you want to see the true final price including taxes, enter your local sales tax rate in the optional third field. The calculator will then show you four key pieces of information: your final price after tax, the total amount you save, the discounted price before tax, and the tax amount if applicable. All results update instantly as you change any values, allowing you to quickly compare different scenarios.
Understanding Discounts
Discounts are one of the most common pricing strategies used by retailers worldwide. Understanding how they work can help you make smarter purchasing decisions and recognize when you are truly getting a good deal.
Percentage Off vs Dollar Off
A percentage discount reduces the original price by a specified proportion of its value. When a store advertises "25% off," they reduce the price by one quarter. The actual dollar savings scales with the item price, so a 20% discount saves $10 on a $50 item but $200 on a $1,000 item. Dollar-off discounts, like "$15 off your purchase," provide a fixed savings regardless of the total. Generally, percentage discounts work better for expensive items, while dollar-off coupons provide better value on lower-priced purchases.
Stacking Discounts
When multiple discounts apply, they are calculated sequentially rather than added together. A 20% discount followed by an additional 10% off does not equal 30% off. Instead, you first pay 80% of the original price, then 90% of that result. On a $100 item, stacked 20% and 10% discounts yield $72, not $70. Some retailers prohibit stacking, so always check the terms before assuming you can combine offers.
MSRP vs Sale Price
The manufacturer suggested retail price (MSRP) is often set higher than what most stores actually charge. Retailers may advertise discounts based on MSRP rather than their regular selling price, making deals appear more impressive than they truly are. Always compare the sale price to what you would typically pay elsewhere, not just the listed original price.
Psychological Pricing
Studies show consumers respond differently to how discounts are framed. A "50% off" sign on a $20 item feels more impressive than "$10 off," even though the savings are identical. Retailers also use charm pricing, ending prices in .99 to make them appear lower. Being aware of these tactics helps you evaluate deals based on actual value rather than emotional response.
Comparing Different Deals
When comparing offers from different stores, calculate the final price after all discounts and taxes. A 30% discount at one store might result in a higher price than a 20% discount at another if the original prices differ. Use this calculator to compare actual out-of-pocket costs rather than just discount percentages.
Frequently Asked Questions
How can I calculate a discount mentally?
For quick mental math, break percentages into easier chunks. To calculate 25% off, find half the price and then halve it again, since 25% is half of half. For 10% off, simply move the decimal point one place left. For 20% off, calculate 10% and double it. A 15% discount is 10% plus half of that amount. These shortcuts help you estimate savings while shopping without needing a calculator.
Can I stack multiple discounts together?
Whether you can stack discounts depends on store policy. Some retailers allow combining a sale price with a coupon code, while others restrict offers to one per transaction. When stacking is permitted, remember that discounts apply sequentially. A 20% off sale plus a 15% coupon yields about 32% total savings, not 35%. Always read the fine print on coupons and promotional offers to understand what can be combined.
What is the difference between a discount and a coupon?
A discount is a general price reduction applied to items, often during sales events or for specific customer groups like students or seniors. A coupon is a specific offer that requires presenting a code or physical voucher to receive savings. Discounts typically apply automatically, while coupons require action on your part. Some stores offer both simultaneously, allowing additional savings on already reduced items.
Is sales tax calculated on the original price or discounted price?
Sales tax is always calculated on the discounted price, not the original price. If you buy a $100 item at 20% off in a state with 8% sales tax, you pay tax on $80, not $100. This means your tax would be $6.40 rather than $8.00. This rule applies universally across all U.S. states and most countries that collect sales tax.
How do BOGO deals actually work?
Buy One Get One (BOGO) deals vary in their structure. "BOGO Free" means the second item is completely free, effectively giving you 50% off when buying two items. "BOGO 50% Off" means the second item is half price, resulting in 25% total savings on two items. Some BOGO offers require buying multiple items to get one free, like "Buy 2, Get 1 Free," which provides 33% savings across three items. Always calculate the per-item cost to determine if the deal benefits you.
How do I compare different discount offers?
To compare discounts, calculate the final price for each offer rather than focusing on the percentage. A 40% discount at a store with higher prices might cost more than 25% off at a cheaper retailer. Also consider additional factors like shipping costs, return policies, and product quality. Use this calculator to determine actual costs, then factor in any differences in convenience or service between stores.
Why does unit price matter when evaluating discounts?
Unit price reveals the true cost per measurement, whether ounces, count, or servings. A "family size" package at 20% off might still cost more per unit than a regular size at full price. Stores are required to display unit prices on shelf tags, making comparison easier. When evaluating discounts on different sizes, always calculate the unit price to ensure you are actually getting better value with the larger discounted item.
When is the best time to find sales?
Different categories have predictable sale cycles. Electronics see major discounts during Black Friday, Presidents Day, and after new models release. Clothing goes on sale at season changes and after major holidays. Appliances are cheapest in September and October when new models arrive. Furniture sales peak around holiday weekends like Memorial Day and Labor Day. Tracking these patterns helps you time purchases for maximum savings.
Discount Examples
Clothing Sale Example
During a department store clearance, you find a winter coat originally priced at $180 marked down 40%. The discount saves you $72, making the sale price $108. With 7% sales tax added, your total comes to $115.56. If you also have a 10% loyalty coupon that stacks, you would pay 90% of $108, which is $97.20 plus tax, for a final price of $104.
Electronics Deal Example
A television with an MSRP of $650 is advertised at 25% off during a holiday sale. Your savings amount to $162.50, bringing the sale price to $487.50. After applying 6.5% sales tax, you pay $519.19 total. Compared to paying full retail price plus tax, you save over $170 on this single purchase.
Grocery Savings Example
Your weekly grocery trip totals $125 before a store promotion offering 15% off orders over $100. The discount reduces your bill by $18.75, making your subtotal $106.25. Since most groceries are tax-exempt, you pay approximately $106 total. Over a year of weekly shopping, this regular discount could save you nearly $1,000.
Shopping Tips
Compare unit prices across sizes. Larger packages are not always the better deal, even with discounts. Calculate the price per ounce, count, or serving to find true value. Many stores display unit prices on shelf labels to help with this comparison.
Verify the original price is legitimate. Some retailers inflate prices before sales to create the illusion of bigger discounts. Use price tracking websites or browser extensions to see historical pricing and confirm you are getting genuine savings, not marketing manipulation.
Set price alerts for items you want. Rather than buying immediately when you see a sale, use price tracking tools to monitor items on your wish list. These services notify you when prices drop to your target, helping you buy at the optimal time rather than during artificial urgency sales.
Avoid impulse buying during sales. The excitement of a discount can lead to purchasing items you do not need. Before buying anything on sale, ask yourself if you would buy it at full price. If the answer is no, the discount is not actually saving you money since you are spending on something unnecessary.
Factor in the total cost of ownership. A discounted item may cost more in the long run if it requires expensive accessories, consumables, or maintenance. Consider all associated costs before deciding that a sale price represents good value.
The Discount Formula
Sale Price = Original Price × (1 - Discount ÷ 100)
Savings = Original Price × (Discount ÷ 100)
Final Price with Tax = Sale Price × (1 + Tax Rate ÷ 100)
These formulas work for any discount percentage and any original price. The key is to convert the percentage to a decimal by dividing by 100 before multiplying. For a 25% discount, divide 25 by 100 to get 0.25, then multiply the original price by 0.75 to find the sale price.
Did you know?
- Stores often raise prices before sales to make discounts appear larger than they truly are.
- The color red in sale signs triggers urgency and increases impulse purchases by up to 20%.
- The term "MSRP" (manufacturer suggested retail price) is often set artificially high to make deals look better.
- Black Friday discounts average only about 5% more than typical holiday season prices.
- Studies show that shoppers who make lists save 23% more than those who browse impulsively during sales.