Discount Calculator
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What is a Discount?
A discount is a reduction applied to the listed or original price of a product or service. Discounts are a common marketing strategy used to drive sales, clear out old inventory, reward loyal customers, or attract new ones. They can be expressed as a percentage of the original price (e.g., "20% off") or as a fixed amount (e.g., "$10 off"). Understanding how discounts work is essential for both consumers looking for the best deal and businesses managing their pricing strategies and profit margins.
Types of Discounts & Formulas
Discounts come in various forms, each with its own calculation method. This calculator handles the most common types:
- Single Percentage Discount: The most straightforward type. The formula is:
Sale Price = Original Price × (1 - (Discount % / 100)) - Sequential Discounts: When multiple discounts are offered (e.g., a 20% store discount plus a 10% coupon). These are applied multiplicatively, not additively. The formula for two discounts is:
Final Price = Original Price × (1 - (Discount 1 % / 100)) × (1 - (Discount 2 % / 100)) - Reverse Discount Calculation: Used to find the original price when you know the sale price and the discount percentage. The formula is:
Original Price = Sale Price / (1 - (Discount % / 100))
How This Discount Calculator Helps
Our tool simplifies all these calculations, providing instant and accurate results. It's designed to be versatile and user-friendly, helping you:
- Quickly compute the final price after one or more discounts.
- Calculate the exact amount of money you save.
- Determine the total cost and total savings for multiple items (quantity).
- Find the single equivalent discount for a series of sequential discounts.
- Export your results to a CSV file for record-keeping or further analysis.
- Generate a print-friendly summary of your calculations.
- Visualize the savings with an interactive chart.
Common Mistakes to Avoid
- Adding Sequential Discounts: A common error is adding percentages together (e.g., thinking 20% off + 10% off is 30% off). The second discount applies to the already reduced price, so the total saving is less than the sum of the percentages. In this case, it's a 28% effective discount.
- Ignoring Taxes: The final price can be significantly affected by sales tax. It's crucial to know whether tax is applied to the price before or after the discount is taken.
- Confusing Markup with Discount: Markup and discount are related but different. Markup is the percentage added to the cost of a product to get the selling price. A discount is the percentage subtracted from the selling price. A 50% markup is not reversed by a 50% discount.