Discount Calculator
Find the sale price and your exact savings from any discount percentage — with optional sales tax on the discounted price.
Sales tax is charged on the discounted price in most US states — this calculator applies tax after the discount, which is the correct order.
Comprehensive Guide & Formulas
Sale price & savings
Key Takeaways & Benchmarks
- ✓Savings = price × discount %; sale price = price − savings.
- ✓Stacked discounts multiply — 20% then 10% is 28% off, not 30%.
- ✓Sales tax usually applies to the discounted price.
- ✓Original price = sale price ÷ (1 − discount %).
- ✓Judge deals on the final price, not the claimed discount depth.
How discount math works
A discount reduces the price by a percentage of the original. The store keeps (100% − discount) and you keep the rest as savings. The only subtlety is order of operations: sales tax applies after the discount in most places, which this calculator handles automatically.
Where shoppers go wrong is with stacked offers. 'An extra 20% off sale items' sounds like simple addition, but percentages multiply. Two 20% discounts in a row leave you paying 64% of the original — a 36% total discount, not 40%.
- 1Enter the original price
The pre-discount price on the tag.
- 2Set the discount percentage
The percent-off figure advertised.
- 3Add sales tax if needed
Applied to the discounted price, as most states do.
- 4Read your savings
Sale price, amount saved and final total.
The formula
Worked example
A $120 jacket at 25% off: savings are $120 × 0.25 = $30, so the sale price is $90. With 8% sales tax, the final total is $90 × 1.08 = $97.20. Your true saving versus the taxed original ($129.60) is $32.40.
Stacked example: that $90 sale price with an extra 10% off coupon becomes $81 — a total discount of 32.5% off the original $120, not 35%. Close, but the math never lies in the retailer's favour.
Smart shopping tips
- ▸Calculate the final price, not the discount depth — a big percentage off an inflated price is no deal.
- ▸Remember stacked discounts multiply; enter the intermediate price to chain them accurately.
- ▸Compare percentage vs fixed-amount coupons on the actual item price before choosing.
- ▸Watch for 'up to X% off' — it describes the best case, not the typical one.
- ▸If you resell discounted finds, the Profit Margin Calculator shows your real margin after fees.
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Frequently asked questions
How do you calculate a discount?+
Multiply the original price by the discount percentage (as a decimal) to get the savings, then subtract from the original price. A 25% discount on $120 saves $30, making the sale price $90. This calculator also adds optional sales tax on the discounted price, which is how most US states charge it.
What is the formula for percentage off?+
Sale price = original price × (1 − discount ÷ 100). For 30% off $80: $80 × 0.70 = $56. The savings are simply original price × discount ÷ 100. Bookmark this page or use the Tip Calculator for the reverse kind of percentage math at restaurants.
How do stacked discounts work?+
They multiply, they don't add. A 20% discount followed by an additional 10% is not 30% off — it's 0.80 × 0.90 = 0.72, i.e. 28% off. Retailers know this; run the numbers here by entering the first sale price as the 'original' price for the second discount.
Is it better to take a percentage discount or a fixed amount off?+
It depends on the price. On a $200 item, 25% off ($50) beats $40 off; on a $100 item, $40 off beats 25% ($25). The crossover point is where fixed amount ÷ price equals the percentage. When in doubt, calculate both — it takes ten seconds.
Do you pay sales tax on the original or discounted price?+
In most US states, sales tax applies to the discounted price — you save on tax too. A few states tax the original price before manufacturer rebates, which is a subtle difference worth knowing if a deal seems slightly off from your calculation.
How do I reverse-calculate the original price from a sale price?+
Divide the sale price by (1 − discount ÷ 100). If something costs $63 after 30% off, the original was $63 ÷ 0.70 = $90. This is handy for checking whether a 'was $X' claim on a price tag is honest.
What does 'up to 70% off' actually mean?+
It means the single deepest discount in the store is 70% — most items are discounted far less. 'Up to' is doing heavy lifting in that sentence. Always calculate the actual price of the specific item you want rather than shopping the headline.
Are outlet mall discounts real savings?+
Sometimes, but outlet inventory is often made specifically for outlets at lower quality, so the 'compare at' price may never have existed in a real store. Judge the deal on the final price versus alternatives you can actually buy elsewhere, not on the claimed discount depth.
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