How to Calculate a Discount — Percent Off, Stacked Discounts & Real Savings
The basic discount formula
Savings = Original price − Final price
Shortcut for mental math: a 20% discount means you pay 80% of the price — move the decimal once and multiply.
Worked examples
Simple: $120 item at 25% off → 120 × 0.75 = $90 (you save $30)
Reverse: sale price $64 after 20% off → 64 ÷ 0.80 = $80 original
The stacked-discount trap
"30% + 20% off" is not 50% off. The second percentage applies after the first one is already applied:
$100 at 30% off → $70. Extra 20% off applies to $70 → 70 × 0.80 = $56.
Effective discount = 44%, not 50%. The $6 difference is why stores love stacked offers.
Quick stacked-discount table
| Stack | Effective discount |
|---|---|
| 10% + 10% | 19% |
| 20% + 20% | 36% |
| 30% + 20% | 44% |
| 50% + 20% | 60% |
| 50% + 50% | 75% |
Discount vs cashback vs coupon codes
- Instant discount reduces the price before tax — usually the most predictable saving.
- Cashback arrives later and may be capped or expire; treat as partial value.
- Loyalty points have uncertain value — compare offers on final cash price, not headline percentages.
Common mistakes
- Adding stacked percentages instead of multiplying them.
- Applying an "extra %" to the original price instead of the reduced price.
- Comparing percentage-off across items with very different base prices — absolute savings matter too.
- Forgetting that tax is applied to the discounted price in most jurisdictions.
The successive-discount formula
Two stacked discounts combine by multiplication, not addition. The equivalent single discount is:
Example: 30% plus 20% off gives 100 − (70 × 80) ÷ 100 = 100 − 56 = 44%. On a $1,000 order that is $560 to pay, not the $500 that "50% off" suggests. The same formula works for three or more discounts — keep multiplying the remaining-price factors. Our stacked discounts explainer walks through the checkout math step by step, and the Discount Calculator handles the arithmetic for any combination.
FAQ
How do I calculate 15% off quickly?
Take 10% (move the decimal one place left), halve it for 5%, and subtract both from the price. On $80: 10% is $8, 5% is $4, so $80 − $12 = $68.
Is a bigger percentage always better?
No — 50% off a $20 item saves $10, while 20% off a $200 item saves $40. Compare absolute savings and what you actually need.
How does buy-one-get-one compare to percent off?
BOGO on identical items equals 50% off per unit only if both items cost the same. On unequal prices it's usually worse.