Discount Calculator

Calculate the sale price after a discount, including tax. See exactly how much you save and the final price you will pay at checkout.

Discount Details

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Enter the price and discount details, then click "Calculate" to see your savings.

Pro Tip

Before buying during a sale, check the price history. Some retailers raise prices before a sale to make discounts seem larger. Use price tracking tools to verify you are getting a genuine deal.

Try the Sales Tax Calculator

Understanding Discounts and Savings

Discounts reduce the price of goods or services by a percentage or fixed amount. Understanding how to calculate discounts helps you make informed purchasing decisions and compare deals across different retailers. Sales tax is typically calculated on the discounted price, not the original price.

When comparing deals, look at the actual dollar savings, not just the percentage. A 50% discount on a $20 item saves $10, while a 20% discount on a $200 item saves $40. The larger percentage does not always mean the bigger savings.

Stacked discounts (e.g., 20% off plus an additional 10% off) are not the same as a single combined discount. A 20% discount followed by 10% off results in a 28% total discount, not 30%. This is because the second discount applies to the already-reduced price.

Discount Calculation

Final Price = (Original Price − Discount) × (1 + Tax Rate)

Where:

Discount = Original Price x (Discount % / 100)

Tax Rate = Local sales tax rate as a decimal

Example

$120 item with 25% discount and 8.25% tax:

  • Discount amount: $120 x 25% = $30.00
  • Discounted price: $120 - $30 = $90.00
  • Tax on discounted price: $90 x 8.25% = $7.43
  • Final price: $90 + $7.43 = $97.43
  • Total savings vs full price + tax: $32.47

Frequently Asked Questions

Is tax calculated on the original or discounted price?
In most U.S. states, sales tax is calculated on the actual selling price (after discount), not the original price. This means you save on tax as well when an item is discounted.
How do stacked discounts work?
Stacked discounts (e.g., 20% off then additional 10% off) are applied sequentially, not added together. A 20% + 10% discount on $100: first $100 x 0.80 = $80, then $80 x 0.90 = $72. Total discount is 28%, not 30%.
How do I calculate the original price from a sale price?
If you know the sale price and discount percentage: Original Price = Sale Price / (1 - Discount%). For example, if an item is $75 after a 25% discount: $75 / 0.75 = $100 original price.
What is a good discount to wait for?
This depends on the item. Electronics often see 20-30% off during Black Friday. Clothing regularly goes on sale for 30-50% off at end of season. Major purchases like appliances are often 15-25% off during holiday sales.