How the discount is worked out
A percentage discount lowers the price by a fixed fraction. The calculator multiplies the original price by the discount rate to find the amount saved, then subtracts that from the original price to give the final sale price.
So a 25% discount on a $100 item saves $25 and leaves a sale price of $75. The bigger the percentage, the larger the saved slice and the smaller the amount you actually pay.
Reading the result
Two numbers come out: the sale price you will pay at the register and the amount you save versus the sticker price. The donut chart splits the original price into those two parts — what you pay and what you save — so the value of the deal is easy to see at a glance.
Things to watch for
A few caveats keep a discount honest:
- Stacked discounts do not simply add up: 20% off then a further 10% off is a 28% total reduction, not 30%, because the second cut applies to the already-reduced price.
- Sales tax is calculated on the discounted price, so a discount lowers the tax you pay too.
- A discount is only a saving if you were going to buy the item anyway at the original price.
Formula
saved = price·(discountPercent/100); salePrice = price − savedFrequently asked questions
- Does this include sales tax?
- No. The discount is applied to the listed price. Sales tax, if any, is added afterward to the sale price.