Discount Calculator
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A Smart Shopper's Guide to Discounts & Savings
Understanding how to calculate discounts is the first step toward becoming a savvy shopper. Whether you're facing a massive holiday sale or just using a simple coupon, knowing the math ensures you're always getting the best deal. This guide, powered by our **sale price calculator**, will walk you through everything you need to know.
How Do You Calculate a Discount Percentage?
The core of any sale is the discount formula. It's a simple two-step process:
- Find the savings amount: Multiply the original price by the percentage off (as a decimal). For a 25% discount on a $200 item, the calculation is
$200 * 0.25 = $50. - Calculate the final price: Subtract the savings amount from the original price. Continuing our example,
$200 - $50 = $150.
Our tool automates this process, acting as your instant markdown calculator for any scenario.
Real-World Example: Black Friday Shopping
Imagine you want to buy a TV that's originally $1,200. It's on sale for 30% off, and you also have a special coupon for an additional 10% off. Here's how to calculate the final price:
- First markdown:
$1,200 * 0.30 = $360in savings. The new price is$1,200 - $360 = $840. - Second markdown: The additional 10% applies to the *new* price:
$840 * 0.10 = $84. - Final Price (before tax):
$840 - $84 = $756.
This shows why a "30% + 10% off" deal isn't the same as 40% off. It's a sequential discount.
Beyond Percentages: Fixed Amount Discounts
Sometimes a deal is for a fixed amount, like "$20 off a purchase of $100 or more." This is often better for smaller purchases. For example, on a $100 item, a "$20 off" coupon is the same as a 20% discount. But on a $500 item, a 20% discount saves you $100, making it the far better choice. Use our calculator to compare coupons and see which one saves you more money.
Frequently Asked Questions (FAQ)
Is sales tax calculated before or after the discount?
Sales tax is almost always calculated on the price *after* the discount has been applied. Our sale price calculator automatically does this for you.
How do I calculate a double discount (e.g., 20% off + an additional 10% off)?
You must apply the discounts sequentially. First, take 20% off the original price to get a new subtotal. Then, take 10% off that new subtotal. It is not the same as a 30% discount.
What's the difference between a markdown and a discount?
Functionally, they are very similar. A 'markdown' is the reduction in a product's price, while a 'discount' is the tool used to achieve that markdown (e.g., a 25% off coupon). For a shopper, the terms can often be used interchangeably.
How do you find the original price from the final price?
You can use the 'Find Original Price' mode on our calculator. The retail discount formula for this is: Original Price = Final Price / (1 - (Discount Percentage / 100)).