How to Calculate Discounts
Whether you're shopping during a major holiday sale or trying to calculate a markup for your business, understanding how percentages affect a final price is crucial. A discount is simply a percentage reduction applied to the original retail price.
To manually calculate a discount, you multiply the original price by the discount percentage (as a decimal), and then subtract that number from the original price. Our calculator streamlines this, instantly showing you exactly how much money stays in your pocket.
Don't Forget the Sales Tax
A common mistake when calculating sale prices is forgetting about local sales tax. An item that is "50% off" might seem like a straightforward calculation, but sales tax is usually applied to the discounted price, not the original price.
Example: If a $100 item is 20% off, the discounted price is $80. If your local sales tax is 8%, the tax is calculated on the $80, adding $6.40 for a final total of $86.40.
Our calculator allows you to input an optional tax rate so you know exactly what you'll owe at the register.