How is a discount calculated?
A discount is always a percentage of the original price. A 20% discount on 200 saves 40 (20% of 200), so the final price is 160.
Successive discounts don’t simply add up
A common mistake: 20% off followed by another 10% off is not 30% off. The second discount applies to the already-reduced price. 100 becomes 80 after 20% off, then 72 after 10% off the 80, a total discount of 28%, not 30%.
How to find the original price from the sale price
Divide the sale price by (1 − the discount). Example: an item costs 150 after a 25% discount, so its original price = 150 ÷ 0.75 = 200. The common mistake is to add 25% to 150 and get 187.5, which is wrong.
What is the real discount between two prices?
Discount % = (original price − new price) ÷ original price × 100. Example: a product was 250 and is now 199, a saving of 51, or 20.4%. Choose the “Find the discount %” tab in the calculator to get it directly — useful for checking whether an advertised sale is real.
Discounts and VAT
VAT is charged on the price after the discount. Example in Saudi Arabia: 200 before VAT, a 20% discount makes it 160, then 15% VAT makes it 184. For VAT on its own, use the VAT calculator.
Frequently Asked Questions
Why doesn’t 50% + 50% off make it free?
Because the second 50% applies to the remaining price. 100 becomes 50, then 25, not zero.
Can this calculate several discounts in a row?
Yes, up to two: enter the first in the discount field and the second in “Extra discount”; the second is applied to the price after the first. For more, use the result as the new original price.
Is 50% off plus an extra 20% the same as 70% off?
No. The extra discount applies to the already-reduced price, not the original: 100 − 50% = 50, then 50 − 20% = 40, an effective discount of only 60%. Enter the extra discount in the third field to calculate it automatically.
A 20% discount then a 20% increase: is the price back where it was?
No. 100 minus 20% is 80, and 80 plus 20% is only 96, because each percentage is applied to the price just before it.
How do I know my profit after a discount?
Use the profit margin calculator with the discounted selling price to see whether the product is still profitable.