Calculate Discount & Sale Price

Enter the original price and discount percentage:

Sale Price = Original Price - (Original Price ร— Discount %)
Discount Amount = Original Price ร— (Discount % รท 100)

Discount Calculations Explained

Discount calculations are essential for both consumers and businesses. Understanding how to calculate discounts helps you make informed purchasing decisions and set competitive pricing strategies.

How Discount Calculations Work

๐Ÿ’ฐ Original Price

The starting price before any discount is applied

๐Ÿ“Š Discount Percentage

The percentage reduction from the original price

๐Ÿ’ธ Discount Amount

The actual dollar amount saved

๐Ÿท๏ธ Sale Price

The final price after discount is applied

Discount Calculation Examples

Original Price Discount Discount Amount Sale Price Savings
$100.00 10% $10.00 $90.00 You save $10.00
$250.00 25% $62.50 $187.50 You save $62.50
$75.00 30% $22.50 $52.50 You save $22.50
$500.00 15% $75.00 $425.00 You save $75.00
$199.99 20% $40.00 $159.99 You save $40.00

๐Ÿ’ก Pro Tip: When shopping, always calculate the actual discount amount rather than just looking at the percentage. A 50% discount on a $10 item saves you $5, while a 10% discount on a $100 item saves you $10.

Common Discount Scenarios

๐Ÿ›๏ธ Retail Shopping

Sale items, clearance, seasonal discounts

๐Ÿช Business Pricing

Bulk discounts, loyalty programs, promotional pricing

๐Ÿ’ผ B2B Transactions

Volume discounts, early payment incentives

๐ŸŽŸ๏ธ Event Tickets

Student discounts, senior discounts, group rates

Understanding Discount Types

Discount Type Description Example
Percentage Off Reduce price by a percentage 20% off $100 = $80
Dollar Amount Off Reduce price by fixed dollar amount $25 off $100 = $75
Buy One Get One Second item at discount or free BOGO 50% off
Bundle Pricing Discounted price for multiple items 3 items for $10
Volume Discount Larger quantity = lower per-unit price Buy 10, get 15% off

Business Applications

๐Ÿท๏ธ Pricing Strategy

Set competitive prices and margins

๐Ÿ“ˆ Sales Promotions

Create effective discount campaigns

๐Ÿ“Š Profit Analysis

Understand discount impact on profitability

๐Ÿ’ก Customer Behavior

Study discount response and purchasing patterns

Discount Psychology

Understanding how customers perceive discounts:

  • Round Numbers: $99.99 vs $100 - psychological pricing
  • Percentage vs Dollar: "20% off" vs "$20 off" - different perceptions
  • Limited Time: "Today only" creates urgency
  • Free Shipping: Often more valuable than small percentage discounts
  • Bundle Deals: Perceived value in multi-item purchases

Calculating Multiple Discounts

When applying multiple discounts, order matters:

Method Calculation Example
Sequential Apply one discount, then another $100 โ†’ 20% off = $80 โ†’ 10% off = $72
Combined Calculate total discount percentage $100 ร— (1 - 0.20) ร— (1 - 0.10) = $72
Additive Add discount percentages $100 ร— (1 - (0.20 + 0.10)) = $70

Tax Considerations

Remember that discounts are typically calculated before tax:

Scenario Discount Applied To Tax Calculation
Pre-tax discount Original price Tax = (Original - Discount) ร— Tax Rate
Post-tax discount Price + Tax Tax = Original ร— Tax Rate, then subtract discount
Tax-free discount Varies by location Check local tax laws