Discount Calculator
Calculate the discount amount, your savings, and the final price after a markdown. Enter the original price and the discount percentage — or work backwards from a final price to find the discount you received.
What Is a Discount?
A discount is a reduction in price from the original amount. Discounts are used in retail to move inventory, clear seasonal stock, attract new customers, or reward loyalty. The discount is usually expressed as a percentage of the original price.
A 25% discount on a $200 item means $50 off, so you pay $150. The savings percentage is always calculated against the original price, not the final price.
Discount Formulas
Finding the final price:
Discount Amount = Original Price × (Discount % ÷ 100)
Final Price = Original Price − Discount Amount
Finding the discount percentage from a final price:
Discount Amount = Original Price − Final Price
Discount % = (Discount Amount ÷ Original Price) × 100
Worked Example
A jacket is priced at $200 with a 25% discount:
Discount = $200 × 0.25 = $50
Final price = $200 − $50 = $150
Reverse: you paid $150 for a $200 item:
Discount = $200 − $150 = $50
Discount % = ($50 ÷ $200) × 100 = 25%
Frequently Asked Questions
What is the difference between discount and markup?
A discount reduces the selling price from its original level. A markup increases the cost to set the selling price. Discounts are calculated from the original selling price; markups are calculated from cost.
What does "25% off" actually mean?
You pay 75% of the original price. For a $200 item, 25% off means you pay $200 × 0.75 = $150. The $50 you saved is the discount amount.
Can I stack discounts?
Stacking discounts does not simply add the percentages. Two 20% discounts in sequence give a total discount of 36%, not 40%. On a $100 item: 20% off = $80, then 20% off $80 = $64. You paid $64, so you saved $36 (36% off).
Does the discount percentage apply before or after tax?
Discounts are applied before tax in most jurisdictions. The tax is then calculated on the discounted price. If a $200 item is 25% off, you pay sales tax on $150, not $200.
What is a better deal — 30% off or buy-one-get-one-free?
Buy-one-get-one-free is equivalent to 50% off per unit, which is better than 30% off — assuming you actually wanted two of the item. If you only wanted one, the 30% discount is better because you spend less in total.
How do I calculate the original price from a final price and discount?
Divide the final price by (1 − discount ÷ 100). For a $150 final price with a 25% discount, $150 ÷ 0.75 = $200. That is your original price. Do not add 25% to the final price — that would give $187.50, which is wrong.