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Discount Calculator
Calculate the final discounted price, dollar amount saved, and savings percentage for any discount offer. Works for single discounts, multiple stacked discounts, and finding what percentage off a given price reduction represents.
Whether you are a shopper calculating sale prices, a retailer setting promotion pricing, or a business offering bulk discounts, this calculator handles all discount scenarios instantly. Also find the original price if you know the discounted price and percentage off.
Formula
Discounted Price = Original Price × (1 - Discount%/100) | Savings = Original × Discount% | Stacked Discounts: multiply factors together
How Discounts Work in Business
Discounts reduce selling price to stimulate demand, clear inventory, reward loyal customers, or compete on price. Understanding the true cost of discounts is critical — a 20% discount requires selling 25% more units just to maintain the same revenue, and even more to maintain the same profit margin.
Impact of Discounts on Profit Margin
Discount
Original Margin
Volume Needed to Compensate
10% discount
25% margin originally
Must increase volume 14% to maintain same profit
20% discount
25% margin originally
Must increase volume 36% to maintain same profit
30% discount
25% margin originally
Must increase volume 75% to maintain same profit
10% discount
50% margin originally
Must increase volume 11% to maintain same profit
20% discount
50% margin originally
Must increase volume 25% to maintain same profit
Types of Discounts
Trade discount: given to wholesalers and distributors (typically 30-50% off list price). Quantity discount: reduction for bulk purchases (encourages larger orders). Seasonal discount: end-of-season clearance (20-70% off to clear inventory). Cash discount: early payment incentive (e.g., 2/10 net 30 = 2% off if paid within 10 days). Promotional discount: limited-time sale to drive traffic (typically 10-30%).
Stacked Discounts
Stacked discounts are NOT additive — they are multiplicative. A 20% discount plus 10% discount is NOT 30% off. It is: Pay 80% of price, then 90% of that = 80% × 90% = 72% = 28% off total. This is important for retailers running stacked promotions and customers using multiple coupons.
Frequently Asked Questions
Discounted Price = Original Price × (1 - Discount%/100). For 30% off $80: $80 × (1 - 0.30) = $80 × 0.70 = $56. Savings = $80 × 0.30 = $24. Quick mental math: 10% off = move decimal left one place. 20% off = 10% × 2. 25% off = divide by 4. 50% off = divide by 2.
They are the same thing. 20% off means you pay 80% of the original price. 20% less means the new price is 80% of the original. In retail, these terms are used interchangeably. However, "save 20%" can sometimes mislead — saving 20% of the discounted price is different from saving 20% off the original price.
Stacked discounts multiply rather than add. Example: 20% off, then additional 10% off. Pay: 100% × 0.80 × 0.90 = 72% of original. Total discount = 28%, not 30%. For any number of stacked discounts: multiply all (1 - discount%) factors together. Three 10% discounts: 0.9 × 0.9 × 0.9 = 72.9% paid = 27.1% total discount.
Original Price = Discounted Price / (1 - Discount%). Item on sale for $63 after 30% off: Original = $63 / 0.70 = $90. This is useful when you see a sale price and want to verify the original price, or when calculating reverse markdowns.
Extra volume needed = Discount% / (Margin% - Discount%). At 40% margin, 20% discount: extra volume = 20% / (40% - 20%) = 20%/20% = 100% — you need to sell DOUBLE the units just to maintain the same total profit. This explains why random discounting is dangerous for businesses with tight margins.
The profit-maximizing discount depends on price elasticity — how much volume increases when price decreases. If demand is highly elastic (price-sensitive customers), larger discounts increase profit. If demand is inelastic (price-insensitive), discounting reduces profit. A/B test different discount levels to find the elasticity of your specific market.