Whether you're shopping during a sale, applying coupons, or setting prices for your business, understanding discount calculations saves you money and time. The math is simple once you know the formula — but getting it wrong costs you.
Savings = Original Price × (Discount% ÷ 100)
Savings = $120 × 0.30 = $36 saved
Final price = $120 − $36 = $84
Or: $120 × (1 − 0.30) = $120 × 0.70 = $84
| Original Price | Discount | You Save | You Pay |
|---|---|---|---|
| $100 | 10% | $10 | $90 |
| $100 | 25% | $25 | $75 |
| $100 | 50% | $50 | $50 |
| $250 | 20% | $50 | $200 |
| $89.99 | 15% | $13.50 | $76.49 |
No — and this trips up many shoppers. If you get 20% off, then an additional 10% off the already-discounted price:
Stacked discounts are always less than the sum of the percentages. Retailers know this — you should too.
Useful when the original price isn't shown
Formula: ((Original − Sale) ÷ Original) × 100. If something was $80 and is now $60: ((80−60)÷80) × 100 = 25% off.
It depends. BOGO free on a single item = 50% off per item. But if you only need one item, BOGO free forces you to buy two — potentially costing you more than buying one at full price elsewhere.
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