How to Calculate a Discount and Sale Price
A "% off" sign is easy to misjudge in the moment. Here is how to turn any discount into the real saving and the final price, why stacked discounts do not simply add up, and a couple of mental tricks that work at the till.
The basic formula
Saving = original price x (discount / 100). Final price = original - saving — or more directly, original x (1 - discount / 100). So an $80 jacket at 25% off is 80 x 0.75 = $60, saving $20.
Thinking in "what you pay" is often faster than "what you save": 25% off means you pay 75%. The Discount Calculator shows both the saving and the final price at once.
Mental shortcuts for the shop
Round to friendly percentages. 10% is the price with the decimal moved one place left; 5% is half of that; 20% is double the 10%. For 15% off a $40 item: 10% is $4, 5% is $2, so 15% is $6 off — you pay $34.
When in doubt, compute the amount you pay rather than the amount you save — it is one step instead of two, and it is the number at the till.
Stacked discounts do not add up
"30% off, then an extra 20% off" is not 50% off. Each discount applies to the price left after the previous one: $100 -> 30% off = $70 -> 20% off that = $56. That is a 44% total discount, not 50%. Multiply the factors instead: 0.70 x 0.80 = 0.56, so you pay 56%.
Discount first, then tax
In most places the discount comes off first and tax is charged on the reduced price. A $200 item at 15% off is $170; add 8% tax and you pay 170 x 1.08 = $183.60. Doing it in the other order gives a different, wrong total — so discount first, then tax.
Frequently asked questions
How do I find the original price from a sale price? Divide by (1 - discount / 100). A $60 item that was 25% off originally cost 60 / 0.75 = $80.
Is "buy one get one 50% off" the same as 25% off? Across the two items, yes — you pay for 1.5 items out of 2, which is 75% of the total, a 25% saving overall.
What does "up to 70% off" really mean? Only that at least one item reaches 70% off; most of the range is usually discounted far less.
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Last updated: August 27, 2026