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Discount calculator: how it works
Multiply the price by the discount percentage and divide by 100 to get the saving, then subtract it from the price. 20% off $250 is $50 off, so you pay $200.
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Discount formulas
Saving = price × discount ÷ 100. Final price = price × (1 − discount ÷ 100). For two discounts in a row, multiply the factors: final = price × (1 − d1 ÷ 100) × (1 − d2 ÷ 100).
| Original price | Discount | You save | Final price |
|---|---|---|---|
| $80.00 | 15% | $12.00 | $68.00 |
| $250.00 | 20% | $50.00 | $200.00 |
| $1,200.00 | 35% | $420.00 | $780.00 |
| $100.00 | 20% + 10% | $28.00 | $72.00 |
How to use the discount calculator
- Choose the currency.
- Enter the original price.
- Enter the discount percentage.
- Optionally add an extra discount applied after the first.
Discounts and your margin
A discount comes straight out of profit. If your margin is 40%, a 20% discount halves the profit on the sale: on a $100 item costing $60, profit falls from $40 to $20. You would need to sell twice as many units to earn the same. Run the numbers through the profit margin calculator before you set an offer.
Questions people ask
How do I calculate a discount?
Multiply the price by the discount percentage and divide by 100 to get the saving, then subtract it from the price. 20% off $250 is $50 off, so you pay $200.
Is 20% off then 10% off the same as 30% off?
No. The second discount applies to the already reduced price: $100 less 20% is $80, less 10% is $72. That is 28% off in total, not 30%.
How do I find the original price from a sale price?
Divide the sale price by 1 minus the discount rate. A $60 item at 25% off was $60 ÷ 0.75 = $80.
How do I show a discount on an invoice?
Show the original price, the discount as its own line or column, and the reduced amount. Tax is normally charged on the price after discount.