The term Discount Calculator can be used to refer to many forms of reduction in the price of a good or service. The two most common types of discounts are discounts in which you get a percent off, or a fixed amount off.

A percent off of a price typically refers to getting some percent, say 10%, off of the original price of the product or service. For example, if a good costs $45, with a 10% discount, the final price would be calculated by subtracting 10% of $45, from $45, or equivalently, calculating 90% of $45:

10% of $45 = 0.10 × 45 = $4.50

$45 – $4.50 = $40.50

or

90% of $45 = 0.90 × 45 = $40.50

In this example, you are saving 10%, or $4.50.

A fixed amount off of a price refers to subtracting whatever the fixed amount is from the original price. For example, given that a service normally costs $95, and you have a discount coupon for $20 off, this would mean subtracting $20 from $95 to get the final price:

$95 – $20 = $75

In this example, you are saving the fixed amount of $20.

The above examples are two of the most common discount methods. There are numerous others that can be more confusing, such as stackable discounts where you can get 20% off the original price, then 15% more off of that discounted price. If you need to do these kinds of calculations, refer to the Percent Off Calculator.

Read More: Loan Calculator

How to use the discount calculator

Navigate the myriad of discounts and calculate precisely how much you’re saving with our discount calculator. Here’s how to use it to your advantage:

1. Choose the type of discount: Select the kind of discount you’re dealing with from the dropdown menu. You have options like a simple percentage off, discounts on subsequent products, a fixed amount off, and more complex deals like ‘2 for 1’ or ‘3 for 2’.
2. Input the original price: Enter the item’s original price before any discounts are applied.
3. Specify the discount: If it’s a percentage discount, type in the discount rate. For deals like ‘2 for 1’, this field may change to reflect the nature of the offer.
4. Include tax consideration: Indicate whether the price you have entered includes tax. This will affect the calculation of your savings.
5. View your savings and final price: The calculator will then display how much you’re saving and what the final price you pay is.

The calculator is designed for reversibility:

• If you know the final price and the discount, you can calculate the original price.
• If you know the final price and the original price, you can determine the discount rate.

For instance, if an item priced at $20 comes with a 4% discount and tax is already included, the calculator will show that you pay $19.20, saving you $0.80.

Continue reading to understand how different types of discounts can affect your spending and how calculating these savings can lead to more informed financial decisions.

Discount formula

The formula for discount is exactly the same as the percentage decrease formula:

discounted price = original price - (original price × discount / 100)

How to calculate discount and sale price

Just follow these simple steps:

1. Determine the original price (for example, $90).
2. Determine the discount percentage (for example, 20%).
3. Calculate the savings:20% of $90 = $18
4. Subtract the savings from the original price to get the sale price:$90 - $18 = $72
5. You’ve just applied the discount!

Behind the scenes of the discount calculator

Tibor, a PhD candidate in Statistical Methods in Economics, brings deep financial insight to creating the discount calculator. His experience has equipped him with an understanding of the nuances of pricing strategies and consumer savings, which is crucial for crafting a tool that simplifies complex discount calculations.

The genesis of this calculator came as Tibor navigated the intricate landscape of promotions and discounts within the retail sector. Seeking a method to clarify the impact of discounts for both consumers and analysts, he devised a calculator capable of handling various types of price reductions, including tax considerations.

Leveraging his financial background, Tibor uses the calculator himself when assessing the viability of discounts and their true value to the customer. This tool has become a cornerstone for users to effortlessly determine savings and final prices, enhancing their decision-making process in personal and professional shopping scenarios.

With Tibor’s experience underscoring its development, the discount calculator is subject to stringent accuracy checks and is continually refined based on financial expertise to ensure it remains a trusted and reliable resource. Our Editorial Policies page offers a detailed look at the rigorous standards and peer-review processes that our tools undergo.

Calculate Sale Price from List Price and Discount

The sale price is the list price minus the product of the discount divided by 100 and multiplied by the list price.

S=L−D100×LS=L−D100×L

Free Smal SEO Tool Website

Example:

If the list price of an item is $120 and discount is 75% then the final sale price is calculated as follows:

S=L−D100×LS=L−D100×L

S=120−75%100×120S=120−75%100×120

S=120−0.75×120S=120−0.75×120

S=120−90S=120−90

S=30S=30

Amount Saved=$120−$30=$90Amount Saved=$120−$30=$90

Calculate List Price from Discount and Sale Price

The list price is the sale price divided by the difference of 1 minus the result of discount divided by 100.

L=S(1−D100)L=S(1−D100)

Example:

If the sale price of an item is $40 and the discount is 20% then the list price is calculated as follows:

L=S(1−D100)L=S(1−D100)

L=40(1−20%100)L=40(1−20%100)

L=40(1−0.20)L=40(1−0.20)

L=400.80L=400.80

L=50L=50

Amount Saved=$50−$40=$10Amount Saved=$50−$40=$10

Sample Discount Percentage Calculation

James bought a vintage lava lamp at a sale price of $89.63. The original price was $165.99. What was the percentage discount on the original price of the lava lamp?

Using the formula above, list price = L = 165.99, and price sale = P = 89.63.

(165.99−89.63)165.99×100=46

Different kinds of discounts

There are different kinds of discount offers and promotions that you may come across that may invoke the need for a discount calculator.

Some are seasonal – often when seasons change big clothing stores announce 50+ % discounts. Major shoe brands like Adidas, Nike, Asics, Skechers, Fila, and Bata have established outlets for such inventory where you can get a bargain on your new shoes. The same goes for clothing companies such as Gucci, Louis Vuitton, Hermes, Prada, Chanel, Ralph Lauren, and Versace who often offer clothes on sale.

Specific social groups are given price reductions based on their characteristics – these include students, military officers, the elderly, and disabled people. Individuals identified as in need of supplementing their income may be offered coupons. Usually, these people have a specific document to testify to them being of a certain status. However, documents allowing a discount are not exclusive to those cases – coupons also are a form of discount ^[1]. Coupon or otherwise, this calculator can help you find out the sale price after discount.

Importantly, most companies offer special discounts to their employees, too (employee discounts). ^[1] Using these is a great option to ease the stress on your budget.

Certain dates of the calendar year like Black Friday and Cyber Monday have (rightfully or not) become synonymous with “huge discounts”. Black Friday is when you can expect significant savings on purchases from brick-and-mortar stores, while Cyber Monday is when Amazon and other online retailers make generous discounts on their regular prices. Not surprisingly, our calculator is used most around these dates each year.

Brief history of price discounts

Interestingly, discounts are a fairly recent phenomena. Percent discount calculators like this one would not be needed throughout most of human history as even the invention of money is itself only several thousand years old. Prior to that, trade deals were made in kind – a bushel of apples for a stack of hay, etc. Haggling over prices was how you got a good “discount” in the olden days. This custom is still present and even mandatory in many parts of the globe.

Without a fixed price, however, a price decrease doesn’t really make sense. Many readers may be fascinated to discover this, but fixed prices and the practice of openly displaying the price tag of a good or service is a fairly recent Western development. Price labels were introduced first by the Quakers (religious group, part of Christianity) who, among other things, believed that the fixed pricing system would promote honesty and eliminate the greed that was pervasive in their communities ^[2]. It later gained wider adoption until it finally became law in most developed countries (consumer laws regarding discounts to follow).

It was partly the desire to be transparent and fair in their dealings, but it was also the industrialization of manufacturing that helped nudge this process. It wasn’t until that moment that a discount on the price actually got its meaning, and so the need to calcualte discounts arose.

Conclusion:

Read More: Discount Calculator

FAQs:

Q: What is a Discount Calculator?

A: A Discount Calculator is an online tool designed to help you determine the sale price of an item after applying a discount, or to find out the discount percentage based on the original and sale prices.

Q: Why should I use a Discount Calculator?

A: Using a Discount Calculator can help you make informed purchasing decisions, ensure you’re getting the best deal, and even assist in negotiating prices.

Q: Where can I find a Discount Calculator?

A: Discount Calculators are widely available online. You can find them by searching for “Discount Calculator” in your preferred search engine, or you might find them on shopping, finance, or math-related websites.

Q: What information do I need to use a Discount Calculator?

A: To use a Discount Calculator, you typically need either the original price and the discount percentage, or the original price and the sale price.

Q: How do I calculate the sale price using a discount percentage?

A: To calculate the sale price, enter the original price and the discount percentage into the calculator. The tool will then provide you with the sale price.

Q: Can I calculate the discount percentage if I know the original and sale prices?

A: Yes, you can calculate the discount percentage by entering the original and sale prices into the calculator. It will then provide you with the discount percentage.

Q: How accurate are the results from a Discount Calculator?

A: The results from a Discount Calculator are typically very accurate, as they are based on straightforward mathematical formulas. However, always double-check your inputs to ensure accuracy.

Q: Can I use a Discount Calculator on my mobile device?

A: Yes, most online Discount Calculators are mobile-friendly and can be used on smartphones and tablets. Some calculators may also be available as mobile apps.

Q: Do I need to create an account to use a Discount Calculator?

A: Most Discount Calculators do not require you to create an account. They are typically free to use and do not require any personal information.

Q: Can I use a Discount Calculator for multiple items?

A: Yes, you can use a Discount Calculator for multiple items. Simply calculate the discount for each item individually, or add up the original prices of all items and apply the discount to the total.

Q: What if the Discount Calculator asks for information I don’t understand?

A: If you encounter any confusion while using a Discount Calculator, look for help icons or tooltips within the calculator. You can also consult online guides or tutorials for further explanation.

Q: Can I save or print the results from a Discount Calculator?

A: Some Discount Calculators may allow you to save or print the results. Look for print or save buttons on the results page. Alternatively, you can take a screenshot or manually note down the results.

Q: What if the Discount Calculator doesn’t seem to be working properly?

A: If the Discount Calculator doesn’t seem to be working properly, try refreshing the page, clearing your browser cache, or using a different browser. If the issue persists, consider using an alternative calculator.

Q: Can I use a Discount Calculator for both percentage and fixed amount discounts?

A: Most Discount Calculators are designed for percentage discounts. However, some calculators may also allow you to calculate fixed amount discounts. Check the specific calculator you’re using for this feature.

Q: What if the discount percentage is already included in the sale price?

A: If the discount percentage is already included in the sale price, you can use the Discount Calculator to find out the original price before the discount was applied.

Q: Can I use a Discount Calculator to compare prices from different stores?

A: Yes, you can use a Discount Calculator to compare prices from different stores. By calculating the final sale price for each store, you can determine which one offers the best deal.

Q: What if the Discount Calculator doesn’t support the currency I’m using?

A: Most Discount Calculators should work with any currency, as they rely on numerical values rather than specific currency symbols. Simply enter the numerical values without the currency symbol.

Q: Can I use a Discount Calculator to calculate discounts on services as well?

A: Yes, Discount Calculators can be used to calculate discounts on services as well as products. Just enter the relevant prices and discount percentages as you would for any other item.

Q: What if I need to calculate a discount on top of another discount?

A: To calculate a discount on top of another discount, first apply the initial discount to find the new sale price. Then, use that sale price as the original price to apply the second discount.

Q: Can I use a Discount Calculator to calculate markup percentages?

A: While Discount Calculators are primarily designed for discounts, some may also allow you to calculate markup percentages. Check the specific calculator you’re using for this feature.

Q: What if I have questions about how to use a Discount Calculator?

A: If you have questions about how to use a Discount Calculator, look for a help section or FAQs on the website hosting the calculator. You can also consult online tutorials or guides for further assistance.