Discount Calculator

What is a Discount?

A discount is a reduction in the original price of a product or service, usually expressed as a percentage. Discounts are commonly used in retail, sales, and promotions to incentivize purchases and help shoppers save money. Understanding how discounts work helps you make smarter buying decisions and maximize your savings.

How to Use the Discount Calculator

Type the original price of the item or service.
Select your currency (e.g., $, €, £) from the dropdown.
Enter the discount rate (percentage off the original price).
(Optional) Enter a second discount if you have an extra offer or coupon.
Click the Calculate button to see your final price, total discount, and savings.

How is a Discount Calculated? (Formula Explained)

The basic discount formula is:

Final Price = Original Price × (1 - Discount Rate / 100)

If you have two discounts, the formula is:

Final Price = Original Price × (1 - First Discount / 100) × (1 - Second Discount / 100)

Original Price: The starting price before any discounts.
Discount Rate: The percentage off (e.g., 20 for 20% off).
Second Discount: (Optional) An additional percentage off, applied after the first.

Example: Discount Calculation Step-by-Step

Suppose an item costs $100 and is on sale for 20% off, with an extra 10% coupon:

First discount: $100 × (1 - 0.20) = $80
Second discount: $80 × (1 - 0.10) = $72
Final price: $72
Total discount: 28% (not 30%, because discounts are sequential)
You save: $28

Why Discounts Matter for You

Discounts help you save money, stretch your budget, and make informed shopping decisions. Whether you're a consumer, business owner, or bargain hunter, understanding discounts ensures you get the best value for your money.

Normal / Typical Discount Ranges

Retail sales: 10%–50% off
Clearance events: 30%–70% off
Holiday promotions: 15%–60% off
Bulk/business discounts: 5%–30% off

Benefits of Tracking Your Discounts

Instantly see your savings and final price
Avoid mistakes when stacking multiple discounts
Great for shoppers, business owners, and anyone who wants to maximize savings
Helps with budgeting and financial planning

Limitations of This Calculator

Assumes discounts are applied sequentially, not added together
Does not account for taxes, shipping, or other fees
Currency selection only changes the symbol, not the value
Results are for informational purposes only

FAQs About the Discount Calculator

Is the Discount Calculator accurate?
Yes, it uses standard discount formulas and applies discounts sequentially for precise results.
Can I use this for multiple discounts?
Yes, enter both discounts to see the combined effect. The calculator applies them one after the other.
Does it work for any currency?
Yes, select your preferred currency symbol. The calculation itself does not convert between currencies.
How often should I use a discount calculator?
Use it whenever you want to check your savings or compare deals.
Can I use this for business or bulk orders?
Absolutely! It's great for business owners, retailers, and anyone managing discounts.
Does it include taxes or shipping?
No, you should add those separately if needed.
What's the difference between two discounts and adding them?
Two discounts are applied sequentially, not added. For example, 20% then 10% off is not 30% off, but 28% off overall.
Is this tool free?
Yes, How To Calculate's Discount Calculator is 100% free and easy to use.