Discount Calculator
Quickly figure out exactly what you will pay at the register. Calculate percentage discounts, total savings, and final costs after sales tax.
Final Calculation
Taxes are calculated after the discount is applied to the original price, reflecting standard retail transaction procedures.
The Math Behind the Sale
Understanding retail discounts ensures you are actually getting a good deal before handing over your credit card.
Percentage Off
Moving the decimal point makes fast mental math easy. To find 20% off, simply find 10% by moving the decimal left one spot, and double it.
Sales Tax Impact
Remember that a 10% discount in an area with 8% sales tax essentially just covers the tax for you. The final price you pay will be quite close to the sticker price.
Markups Before Markdowns
During big sale events like Black Friday, retailers often artificially inflate the "original price" beforehand. Always verify historical pricing using tracker tools.
How to Calculate Total Cost
Step-by-Step Formula
If you are standing in a store without cell service, you can run the math yourself using this straightforward order of operations:
Frequently Asked Questions
How do you manually calculate a 20% discount?
To find a 20% discount manually, you can multiply the original price by 0.20 to find the savings, then subtract that from the original. Alternatively, for a faster method: multiply the original price by 0.80 (since you are paying 80% of the cost). For example, 20% off $50 is $50 * 0.80 = $40.
Is tax calculated before or after the discount?
In nearly all retail situations, local sales tax is calculated AFTER the discount is applied to the original price. Our calculator does exactly this. However, if a store uses a manufacturer rebate, they sometimes tax the full price first.
What does "Double Discounting" mean (e.g. 20% off, then an extra 10% off)?
Double discounting does NOT mean adding percentages together (it is not 30% off). You take 20% off the original price first, then you take 10% off that new, lower price. You actually end up paying 72% of the original cost, meaning the total discount is 28%, not 30%.
Why do stores use percentage discounts instead of dollar discounts?
Retailers use the "Rule of 100". For items under $100, percentage discounts sound larger and more appealing to consumers (e.g., "25% off" sounds better than "Save $5"). For items over $100, dollar discounts sound better (e.g., "Save $500" rather than "10% off a $5,000 item").
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