Discount Calculator
Calculate discounted sale price and savings amount.
Enter prices to calculate your discount.
View final sale price and total customer savings.
Save $20.00 (20.00%) off the $100.00 list price.
Formulas & Logic
Transparent mathematical formulas behind this calculation engine.
Discount Amount ($)
Discount Amount = Original Price × (Discount % ÷ 100)The total dollar savings subtracted from the customer invoice or retail price.
Final Sale Price
Final Price = Original Price - Discount AmountThe net price the customer pays at checkout.
Discount Percentage (%)
Discount % = ((Original Price - Final Price) ÷ Original Price) × 100Used in reverse mode to find the exact percentage markdown applied.
Worked Example
Retail Markdown Example ($100 Item with 20% Discount)
A retailer offers a 20% promotional discount on an item regularly priced at $100.00.
- Original Price
- $100.00
- Discount %
- 20.00%
- Final Sale Price
- $80.00
- Discount Amount
- $20.00
- Effective Discount
- 20.00%
- Discount Amount = $100.00 × 0.20 = $20.00
- Final Price = $100.00 - $20.00 = $80.00
- Customer Savings = $20.00 (20.00%)
Takeaway: A 20% discount on a $100 item reduces the final customer price to $80.00, providing $20.00 in direct savings.
Methodology & Assumptions
Underlying definitions and operational accounting principles.
- Single-Tier Markdown
- Calculates a single percentage markdown against the stated original price before taxes and shipping.
- Pre-Tax Calculation
- Discounts are calculated pre-tax. In most jurisdictions, sales tax applies to the discounted final price.
Frequently Asked Questions
Practical answers regarding margins, markups, and pricing strategy.
How do I calculate price after discount?
To calculate the final price after a discount, multiply the original price by (1 minus the discount percentage divided by 100). For example, an item regularly priced at $100 with a 20% discount is $100 × (1 - 0.20) = $100 × 0.80 = $80.
How do you calculate a discount percentage?
Multiply the original price by the discount percentage divided by 100 to find the savings amount, then subtract that from the original price. For example, a 20% discount on $100 is $100 × 0.20 = $20 savings, leaving a final price of $80.
How do you calculate what percentage was discounted?
Subtract the final price from the original price, divide by the original price, and multiply by 100. For example: ($100 - $80) ÷ $100 × 100 = 20%.
Can discount exceed 100%?
No. A 100% discount makes the product completely free ($0.00). A discount greater than 100% would mean paying the customer to take the item.
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