Skip to content
Financial Calculators Stacked Discounts

Discount Calculator

Calculate sale prices, total savings, stacked double discounts, and final checkout costs including sales tax.

Final Checkout Price Sale Price
$87.68

You save $39 (32.5% off)

Original List Price $120
Price Before Tax $81
Total Dollar Savings $39
Effective Total Discount 32.5%
Sales Tax Amount $6.68

How to Calculate Discounts

A discount represents a reduction in the standard price of an item or service. Calculating retail markdowns accurately ensures you know exactly how much you will pay at checkout and whether an advertised promotional sale is genuinely advantageous.

ƒ

Single Discount Formula

Sale Price = Original Price × [1 - (Discount % ÷ 100)]

Where:

  • Sale Price = The reduced price before tax
  • Original Price = The original regular price
  • Discount % = The advertised markdown percentage

Note: Total dollar savings is calculated simply as Original Price minus Sale Price.

The Truth About Stacked Coupons & Double Discounts

Retailers often market "Take an extra 20% off already reduced 30% clearance items." Many consumers assume this equates to a 50% discount. In reality:

  • On a $100 jacket with 30% off, the subtotal drops to $70 ($100 - $30).
  • The extra 20% applies to the $70 subtotal, taking off another $14 ($70 × 0.20 = $14).
  • The final pre-tax price is $56, representing a true effective discount of 44%, not 50%.

Related Calculators

Explore other fast, free computational tools in this category

Frequently Asked Questions

Common questions and clear answers about this calculator

Stacked discounts are applied sequentially, not added together. For example, 20% off plus an additional 10% off does not equal 30% off. First, 20% is subtracted from the original price, and then 10% is deducted from that reduced subtotal.