Discount Calculator
Find the final price after a discount, or calculate what percentage off you're getting.
Results are estimates for informational purposes only and do not constitute financial, legal, or medical advice.
This discount calculator handles three common scenarios: calculating the final price when you know the original price and discount percentage; finding the discount percentage when you know both the original and sale prices; and applying multiple sequential discounts (common in wholesale, retail promotions, and stacked coupon codes). Note that multiple discounts do not simply add up — a 20% discount followed by a 10% discount equals a combined discount of 28%, not 30%.
Discount calculations are essential in retail, e-commerce, B2B negotiations, and personal finance. Understanding how discounts stack, how to reverse-calculate original prices, and how VAT interacts with discounts helps you make better buying and selling decisions.
Frequently Asked Questions
How do I calculate a discount percentage?
Discount % = ((Original Price − Sale Price) / Original Price) × 100. Example: original $120, sale $90 → ((120 − 90) / 120) × 100 = 25% discount.
Why don't multiple discounts add up?
Stacked discounts apply sequentially to the reduced price. 20% then 10%: pay 80% of original after first; second applies to that 80%, leaving 72% — total saving 28%, not 30%.
What is the formula for final price after discount?
Final Price = Original × (1 − Discount% / 100). Example: $200 with 15% off → $200 × 0.85 = $170. Savings = $30.
What is a "stacked" discount?
Stacked discounts mean applying one discount after another. Common in retail (clearance + coupon) and B2B pricing. The order of application does not affect the final result.
How do I calculate the original price from a discounted price?
Original Price = Sale Price ÷ (1 − Discount% / 100). Example: a product costs $85 after a 15% discount → $85 ÷ 0.85 = $100 original price. This is useful when price tags only show the sale price.
What is the effective discount of "buy 2 get 1 free"?
"Buy 2 get 1 free" (BOGOF) means you pay for 2 and get 3 items — saving 1 out of 3, which is a 33.3% discount on the total purchase. It is equivalent to a ~33% discount on each item when buying 3 together.
How does VAT apply to discounts?
In most countries, VAT is calculated on the final price after discount — not the original price. So a 20% discount on a €100 item (ex-VAT) gives €80 ex-VAT, then €96 with 20% VAT. Never apply VAT to the original pre-discount price.
What is the difference between a trade discount and a cash discount?
A trade discount is a reduction from the list price offered to trade customers (e.g. wholesalers, retailers) — it reduces the invoice price. A cash discount (or prompt payment discount) is offered for early payment, e.g. "2/10 net 30" means 2% off if paid within 10 days.
How do loyalty points relate to discounts?
Loyalty points are effectively a deferred discount. If 1 point = €0.01 and a product earns 100 points per €10 spent, that is a 1% effective discount on future purchases. The real discount rate depends on the redemption value and your likelihood of actually using the points.
Can this calculator handle negative discounts (surcharges)?
Yes — entering a negative discount percentage (e.g. −10%) calculates a surcharge, increasing the price. A −10% "discount" on $100 gives $110 final price. This is useful for calculating handling fees, import duties, or service charges expressed as percentages.