How to Calculate a Discount: Sale Price and Savings Formula

All tools: Finance & Business

Find the amount saved and final price after a percentage discount, with examples for one discount and successive reductions.

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Discount and sale-price formulas

Discount amount = original price × discount rate ÷ 100. Sale price = original price − discount amount, or original price × (1 − discount rate ÷ 100). Use the same currency for both prices.

Example: 25% off $80

The discount is $80 × 0.25 = $20. The sale price is $80 − $20 = $60. Check the receipt for taxes, shipping or exclusions that may be added after the discount.

Successive discounts are applied one after another

A 20% discount followed by another 10% discount does not equal 30% off the original price. On $100, the first reduction gives $80; the second gives $72. The combined reduction is 28%. Store promotions may use different rules, so check their terms.

Frequently asked questions

How do I find the discount percentage? Divide the amount saved by the original price, then multiply by 100. Can a discount exceed 100%? A price discount normally ranges from 0% to 100%. Does the tool calculate sales tax? Use a tax calculator separately if needed.