How do stacked discounts work?

Stacked discounts are applied sequentially, not added together. The first discount is applied to the original price, and the second discount is applied to the already-reduced price. For example, 20% off followed by an extra 10% off a $100 item gives you $100 x 0.80 = $80, then $80 x 0.90 = $72. The total savings is $28 (28%), not 30%. Stacking discounts always results in a smaller total discount than simply adding the percentages together.

How do I calculate the percentage off a price?

To calculate the discounted price, multiply the original price by (1 minus the discount rate). For example, 25% off a $80 item: $80 x (1 - 0.25) = $80 x 0.75 = $60. The discount amount is $80 - $60 = $20. You can also calculate it directly: $80 x 0.25 = $20 discount.

Is sales tax calculated before or after the discount?

Sales tax is calculated on the discounted price, not the original price. This means you pay tax only on the amount you actually spend. For example, if a $100 item is discounted to $75 and the tax rate is 8%, you pay $75 x 0.08 = $6 in tax, for a total of $81. You do not pay tax on the $25 you saved.

What does cost per dollar saved mean?

Cost per dollar saved shows how much you spend for every dollar you save. It helps evaluate whether a deal is truly worthwhile. A value of $3 means you spend $3 for every $1 saved. Lower values indicate better deals. At a 50% discount, the cost per dollar saved is $1 (you spend one dollar for every dollar saved), which is one of the best ratios you can find in typical retail discounting.

Why is my total stacked discount less than the sum of both discounts?

When you stack two discounts, the second discount applies to a smaller base price (the price after the first discount), so it removes less money in absolute terms. A 20% plus 10% stacked discount equals a 28% total discount, not 30%. The formula is: total discount = 1 - (1 - d1) x (1 - d2), where d1 and d2 are the two discount rates. This is a mathematical property of percentage-based reductions.

Discount Calculator

Calculate the sale price after a discount, including support for stacked discounts and sales tax. Enter the original price, discount percentage, and optional second discount to see your total savings.

How to Use This Discount

Enter the following values to calculate your discounted price:

Original Price: The full retail price of the item before any discounts.
Discount Percentage: The primary discount being offered (e.g., 25% off).
Second Discount (optional): An additional discount applied after the first, such as an extra coupon or loyalty discount.
Sales Tax Rate: Your local sales tax rate to see the final out-of-pocket cost.

The calculator will show your total savings, the price before and after tax, and how much you spend per dollar saved.

What Is Discount?

A discount calculator determines the final sale price after applying one or more percentage-based discounts to an original price. It can also factor in sales tax to show the total amount you will pay at checkout.

Discounts are commonly used in retail, e-commerce, and promotional sales. Understanding how discounts work, especially when stacked, helps consumers make informed purchasing decisions and helps businesses set effective pricing strategies.

Formula & Methodology

Key formulas used in this calculator:

Price After First Discount = Original Price × (1 − Discount% / 100)
Price After Stacked Discount = Price After First × (1 − Second Discount% / 100)
Total Discount Amount = Original Price − Final Discounted Price
Final Price with Tax = Discounted Price × (1 + Tax Rate / 100)
Effective Total Discount % = (Total Discount Amount / Original Price) × 100

Practical Examples

Example 1: Original price = $100. Discount = 25%. Sale price = $75. With 8% tax, final price = $81. Total savings = $25 (25%).

Example 2: Original price = $200. First discount = 30%, second discount = 10%. After first: $140. After second: $126. Total savings = $74 (37%). With 6% tax, final price = $133.56.

Frequently Asked Questions

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