Discount Calculator

How to Calculate a Discount

Calculating a discount is straightforward. The basic formula is: Discount Amount = Original Price × (Discount Percentage / 100). For example, a 25% discount on a $200 item would be: $200 × 0.25 = $50 discount, resulting in a final price of $150. This calculator handles the math for you instantly—just enter the original price and discount percentage.

When tax is involved, it is typically applied to the discounted price, not the original price. For example, if your discounted price is $150 and the tax rate is 8%, the tax would be $150 × 0.08 = $12, making the total $162. This calculator applies tax to the final discounted price, which is the standard practice in most jurisdictions.

Common Discount Types

Percentage discounts are the most common type, where a fixed percentage is taken off the original price. These are widely used during seasonal sales (Black Friday, Cyber Monday, end-of-season clearances) and are easy to understand. Fixed amount discounts subtract a specific dollar amount from the price, such as “$10 off your next purchase.”

Buy-one-get-one (BOGO) deals effectively offer a 50% discount when you buy two items. Tiered discounts offer increasing savings based on purchase amount (e.g., 10% off $50+, 20% off $100+). Stackable discounts allow multiple discounts to be applied sequentially, though the order matters—a 20% discount followed by a 10% discount is not the same as a 30% discount. This calculator handles single percentage discounts with optional tax.