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Discount Calculator

This finds a sale price and the amount saved, handles stacked discounts correctly, and works backwards to the original price when only the discounted figure is shown. Stacked percentages are where shoppers most often overestimate a deal.

You save
$50
Final price
$149

How to use the Discount Calculator

  1. Enter the original price and the discount percentage.
  2. Add a second discount if one applies at the till.
  3. Read the final price and the total saved.
  4. Use the reverse mode when you know the sale price and want the original.

How the calculation works

A single discount multiplies the price by (1 − rate). Two discounts multiply in sequence rather than adding: 30% off then a further 20% leaves 0.70 × 0.80 = 0.56 of the original, a 44% total reduction rather than 50%. That order does not matter to the result, but the misconception that percentages add is what makes stacked offers look better than they are.

Reversing a discount requires division, not subtraction. If a jacket cost 63 after 30% off, the original was 63 / 0.70 = 90 — subtracting 30% of 63 would wrongly suggest 81.90. The same logic strips tax or markup from a gross figure.

Formula
Sale = original × (1 − d₁) × (1 − d₂) ; Original = sale / (1 − d)

Source: Proportional arithmetic; multiplicative treatment of successive percentage reductions.

Worked example

A 249 coat is advertised at 35% off, with an extra 15% off for members at the till.

  1. After the first discount: 249 × 0.65 = 161.85.
  2. After the member discount: 161.85 × 0.85 = 137.57.
  3. Total saved = 249 − 137.57 = 111.43.

Final price 137.57, a saving of 111.43 — an effective 44.75% off, not the 50% that adding the percentages suggests.

Frequently asked questions

Do two discounts add together?+

No, they multiply. 20% then 20% is 36% off in total, because the second reduction applies to the already-reduced price.

How do I find the original price from a sale price?+

Divide the sale price by one minus the discount as a decimal. At 40% off, an item costing 72 was originally 72 / 0.60 = 120.

Is 'buy one get one free' the same as 50% off?+

Only if you wanted two. Per item it is 50% off, but it forces the larger purchase, so compare it against the single-item price you actually need.

Is the discount applied before or after tax?+

Almost always before, since tax is charged on the amount you actually pay. That means a discount reduces the tax as well as the price.

Last reviewed August 31, 2026. We review this page whenever the underlying formula, tax year, published rate or standard changes.

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