How to Calculate a Discount and Sale Price (With Percent Off Examples)
Learn how to find the discount amount, the final sale price, the original price, and the real value of stacked discounts.
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Discount amount and sale price
Two simple formulas cover most situations:
- Discount amount = original price × discount % / 100
- Sale price = original price - discount amount
Example: 25% off an $80 item
The discount is 80 × 25 / 100 = $20. The sale price is 80 - 20 = $60. A shortcut is to multiply the original price by (1 - 0.25), which gives 80 × 0.75 = $60.
How to find the original price
If you know the sale price and the percent off, divide the sale price by (1 - discount as a decimal). For a $60 sale price at 25% off, 60 / 0.75 = $80.
Why two discounts do not simply add up
A 20% discount followed by an extra 10% discount is not 30% off. On a $100 item, 20% off gives $80, and 10% off that gives $72, so the total discount is 28%.
- Apply each discount to the price left after the previous one.
- Check whether sales tax is added before or after the discount in your location.
FAQ
How do I calculate percent off quickly?
Multiply the price by the discount percentage and divide by 100, then subtract that amount from the price.
Are two 10% discounts the same as 20% off?
No. Two successive 10% discounts equal 19% off, because the second discount applies to the reduced price.
How do I work out a discount percentage from two prices?
Subtract the sale price from the original price, divide by the original price, and multiply by 100.
