Discount Calculator
How Discounts Work
Understanding how discounts are calculated helps you make smarter shopping decisions and know exactly what you'll pay at checkout.
Types of Discounts
- Percentage discount: A percentage off the original price (e.g., 20% off)
- Fixed discount: A specific dollar amount off (e.g., $10 off)
- Stacked discounts: Multiple discounts applied sequentially
- Buy one get one (BOGO): Effectively 50% off when buying multiples
Common Discount Examples
| Original | Discount | You Pay | Savings |
|---|---|---|---|
| $100 | 10% | $90 | $10 |
| $100 | 25% | $75 | $25 |
| $100 | 50% | $50 | $50 |
| $100 | 75% | $25 | $75 |
Stacked Discounts Explained
When discounts stack, the second discount applies to the already-reduced price. For example, 20% off + 10% off is NOT 30% off total--it's actually about 28% off:
$100 × 0.80 = $80 → $80 × 0.90 = $72 (28% savings)
Frequently Asked Questions
How do I calculate percentage off?
Multiply the original price by the discount percentage as a decimal, then subtract from the original. Example: $50 with 20% off = $50 - ($50 × 0.20) = $40.
Do stacked discounts combine?
No, stacked discounts are applied sequentially. Two 20% discounts don't equal 40% off--they equal about 36% off since the second discount applies to the already-reduced price.
Is 50% off twice the same as 100% off?
No! 50% off twice equals 75% off total. After the first 50% off, the second 50% applies to the remaining half, not the original price.
When is sales tax applied?
Sales tax is typically calculated on the discounted price, not the original price. This means you save on tax too when items are discounted.
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