How to Calculate Discounts and Final Prices

Shops advertise discounts in percentages, but what matters is the final price. The calculation is quick once you know the steps.

Finding the sale price

Discount amount = original price x discount percent / 100. Final price = original price minus discount amount. A 5,000 item at 20 percent off has a discount of 1,000, so you pay 4,000.

A shortcut

Multiply the price by (100 minus the discount) / 100. For 20 percent off, multiply by 0.80, so 5,000 x 0.80 = 4,000.

Stacked discounts

Two discounts of 20 percent and 10 percent do not add up to 30 percent. The second discount applies to the already reduced price: 5,000 becomes 4,000, then 3,600. The total saving is 28 percent.

Finding the original price

If you paid 3,600 after 10 percent off, divide by 0.90 to get the earlier price: 4,000.

Shopping tips

Comparing different offers

A buy one, get one free deal is the same as 50 percent off the second item. Buy two, get one free is about 33 percent off the total. A flat 500 off beats a 10 percent discount only when the price is below 5,000, because 10 percent of 5,000 is exactly 500.

Finding the discount percentage

If an item changed from 2,500 to 2,000, subtract the new price from the old, divide by the old price and multiply by 100: 500 / 2,500 x 100 = 20 percent.

Frequently asked questions

Is tax added before or after the discount?

It varies by shop and country, so read the receipt or ask. In most cases tax is applied after the discount.

How can I tell if a sale is real?

Check the price history on other websites or in nearby shops. A big discount from an inflated original price is not a real saving.

Use our Discount Calculator to see the final price instantly.