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Discount Calculator

Created by Tibor Pál, PhD candidate, Mateusz Mucha and Hanna Pamuła, PhD
Reviewed by Bogna Szyk and Jack Bowater
Based on research by
Baye, M. Managerial Economics and Business Strategy; 2009See 1 more source
Jobber, D.; Lancaster, G.; Meunier-Fitzhugh K.L. Selling and Sales Management, 11th Edition; 2019
Last updated: Apr 18, 2024


This discount calculator lets you find the reduced price of a product and the amount of money you save. You can also use it in reverse and calculate the discount or the original price.

  • If you enjoy haggling, this calculator can be a sale price calculator to help you negotiate.
  • Got a coupon? Find out the final price after that 15% discount code.

These are just a few of the situations this calculator will help you with. Read on to find out how to calculate discount and what the discount formula is.

💡 If you are a salesperson on the other side of these transactions, you might want to find out what your sale price will be. Consult our profit margin with discount calculator or markdown calculator.

How to use the discount calculator

Navigate the myriad of discounts and calculate precisely how much you're saving with our discount calculator. Here's how to use it to your advantage:

  1. Choose the type of discount: Select the kind of discount you're dealing with from the dropdown menu. You have options like a simple percentage off, discounts on subsequent products, a fixed amount off, and more complex deals like '2 for 1' or '3 for 2'.

  2. Input the original price: Enter the item's original price before any discounts are applied.

  3. Specify the discount: If it's a percentage discount, type in the discount rate. For deals like '2 for 1', this field may change to reflect the nature of the offer.

  4. Include tax consideration: Indicate whether the price you have entered includes tax. This will affect the calculation of your savings.

  5. View your savings and final price: The calculator will then display how much you're saving and what the final price you pay is.

The calculator is designed for reversibility:

  • If you know the final price and the discount, you can calculate the original price.
  • If you know the final price and the original price, you can determine the discount rate.

For instance, if an item priced at $20 comes with a 4% discount and tax is already included, the calculator will show that you pay $19.20, saving you $0.80.

Continue reading to understand how different types of discounts can affect your spending and how calculating these savings can lead to more informed financial decisions.

Discount formula

The formula for discount is exactly the same as the percentage decrease formula:

discounted price = original price - (original price × discount / 100)

How to calculate discount and sale price

Just follow these simple steps:

  1. Determine the original price (for example, $90).

  2. Determine the discount percentage (for example, 20%).

  3. Calculate the savings:

    20% of $90 = $18

  4. Subtract the savings from the original price to get the sale price:

    $90 - $18 = $72

  5. You've just applied the discount!

Behind the scenes of the discount calculator

Tibor, a PhD in Statistical Methods in Economics, brings deep financial insight to creating the discount calculator. His experience has equipped him with an understanding of the nuances of pricing strategies and consumer savings, which is crucial for crafting a tool that simplifies complex discount calculations.

The genesis of this calculator came as Tibor navigated the intricate landscape of promotions and discounts within the retail sector. Seeking a method to clarify the impact of discounts for both consumers and analysts, he devised a calculator capable of handling various types of price reductions, including tax considerations.

Leveraging his financial background, Tibor uses the calculator himself when assessing the viability of discounts and their true value to the customer. This tool has become a cornerstone for users to effortlessly determine savings and final prices, enhancing their decision-making process in personal and professional shopping scenarios.

With Tibor's experience underscoring its development, the discount calculator is subject to stringent accuracy checks and is continually refined based on financial expertise to ensure it remains a trusted and reliable resource. Our Editorial Policies page offers a detailed look at the rigorous standards and peer-review processes that our tools undergo.

FAQ

What are the types of discount?

There are three common types of discounts:

  • Quantity discounts — where you receive a discount based on the number of units you purchase. Thank you, economies of scale!
  • Trade discounts — discounts provided by a supplier to distributors. This discount allows distributors to vary their own prices, to ensure that all items can be sold.
  • Promotional discounts — the most common discount for consumers and a useful sales promotion technique. You've probably seen them before: remember last week's 20% off sale or that "buy one get one free" offer?

How do I calculate the discount percentage?

To calculate the percentage discount with the original price and the discounted price, follow these steps:

  1. Subtract the discounted price from the original price.
  2. Divide this new number by the original price.
  3. Multiply by 100.
  4. You've found the discount percentage! Be proud of your mathematical abilities.

What are fake discounts?

Fake discounts (or fictitious pricing) is a disingenuous marketing practice where the supposed "pre-sale price" of an item is drastically inflated, or the "post-sale price" of an item is actually its market price. The goal is to deceive consumers into believing they are getting a bargain, making them more likely to purchase an item.

How do I calculate a 10% discount?

To compute a 10% discount, follow these steps:

  1. Take the item's price.
  2. Divide it by 100, then multiply it by 10. This is the amount you're saving thanks to the 10% discount.
  3. Subtract this amount from the original price. This is the discounted price.
  4. Spend the money you've saved!

How do I take 20% off a price?

In order to take 20% off a price:

  1. Take the actual price.
  2. Divide the actual price by 100 and multiply it by 20 to calculate the savings.
  3. Subtract the savings from the original price.
  4. The number you've just calculated is the price after the discount.
  5. Enjoy your savings!

How do I calculate 30 percent off?

To calculate 30 percent off, you need to:

  1. Take the pre-sale price.
  2. Divide the original price by 100 and multiply it by 30.
  3. Subtract this new amount from the original one.
  4. The new amount is your discounted price.
  5. Laugh at how much money you're saving!

Why do clearance sales happen?

Fashion is seasonal. Nobody is going to buy a light summer shirt in the middle of winter. To prevent this unsold stock from clogging up their warehouses, shops will very often choose to sell their products at a highly discounted rate at the end of the season to make room for a new batch of seasonal stock.

How do I calculate a discount percentage in Excel?

While it's easier to use the Omni Discount Calculator, here are the steps to calculate the discount percentage in Excel:

  1. Input the pre-sale price (for example, into cell A1).
  2. Input the post-sale price (for example, into cell B1).
  3. Subtract the post-sale price from the pre-sale price:
    In C1, input =A1-B1 and label it “discount amount”.
  4. Divide the new amount by the pre-sale price and multiply it by 100:
    In D1, input =(C1/A1)*100 and label it “discount rate”.
  5. To view the discount as a percentage, right-click on the final cell and select Format Cells. Under Number, select Percentage and specify your desired number of decimal places.

How do I find the original price?

To calculate the original price of an object when you only have its discounted price and the percentage discount, follow these steps. We'll use a discounted price of $80 and a percentage discount of 20%.

  1. Divide the discount percentage by 100 to convert it to a decimal fraction:
    20% / 100 = 0.2
  2. Subtract this fraction from 1:
    1 - 0.2 = 0.8.
  3. Divide the post-sale price by this new number:
    $80 / 0.8 = $100.
  4. Marvel at what you could have been paying!

What is a percentage discount?

Percentage discount is a discount applied to a product or service that is given as an amount per hundred. For example, a percentage discount of 20% would mean that an item that originally cost $100 would cost $20 less and would now cost $80. This is common with promotional and seasonal sales, as a way of encouraging consumers to buy an item at a reduced cost.

Tibor Pál, PhD candidate, Mateusz Mucha and Hanna Pamuła, PhD
What type of discount?
% off
Original price
$
Discount
%
Is tax included in price?
Yes
After discount
You pay
$
You're saving
$
The old version, the simple discount calculator, is also available.
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