How to Calculate a Discount
Calculating a discount is a fundamental math skill used constantly in everyday life, from buying groceries to purchasing a new car. Our free Discount Calculator quickly computes how much money you will save and tells you your exact final price, including sales tax.
The Discount Formula
To figure out a discount manually, you first need to convert the discount percentage into a decimal (by dividing it by 100). Then, you multiply that decimal by the original price to find the amount you are saving.
Final Price = Original Price - Amount Saved
Example: If a $100 jacket is 20% off, you convert 20% to 0.20. Multiply $100 by 0.20, and your savings are $20. Subtract that from the original $100, and your final price before tax is $80.
How Sales Tax Works with Discounts
A common mistake shoppers make is applying the sales tax to the original price. In almost all retail situations, sales tax is applied to the discounted price, not the original sticker price. This calculator handles that order of operations automatically for you.
Frequently Asked Questions (FAQ)
1. What is a "Double Discount"?
A double discount happens when an item is already on sale (e.g., 20% off), and you have an additional coupon (e.g., an extra 10% off). Do not add the percentages together! A 20% off plus 10% off is not 30% off. The store will take the 20% off first, and then apply the 10% coupon to the new, lower price. To calculate this using our tool, find the first discounted price, and then run a second calculation using that new price as your starting point.
2. How do I easily calculate a 10% or 20% discount in my head?
To find 10% of any price, simply move the decimal point one place to the left. For example, 10% of $45.00 is $4.50. To find 20%, find the 10% number and double it ($4.50 × 2 = $9.00).
3. Can a discount be more than 100%?
In standard retail and finance, a discount cannot exceed 100%, because a 100% discount means the item is completely free. However, if a store says they are "marking down prices by 150%," they are usually using hyperbolic marketing language and the math does not technically work that way.