Discount Calculator
Calculate savings, discounted prices, and discount percentages easily.
Please provide any 2 values below to calculate the third.
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Understanding Discounts
The term discount refers to a reduction in the price of a good or service. There are two main types of discounts: percentage discounts and fixed amount discounts.
Percentage Discounts
A percentage discount reduces the original price by a specific percentage. For example, if an item costs $50 with a 20% discount, the calculation works as follows:
Step 1: Calculate the discount amount
Discount Amount = Original Price × Discount Percentage
Discount Amount = $50 × 20% = $50 × 0.20 = $10
Step 2: Calculate the final price
Final Price = Original Price – Discount Amount
Final Price = $50 – $10 = $40
Alternative method:
Final Price = Original Price × (100% – Discount Percentage)
Final Price = $50 × (100% – 20%) = $50 × 80% = $50 × 0.80 = $40
Fixed Amount Discounts
A fixed amount discount simply subtracts a specific dollar amount from the original price. For example, if an item costs $75 with a $15 discount:
Final Price = Original Price – Fixed Discount Amount
Final Price = $75 – $15 = $60
Calculating Discount Percentage
If you know the original price and the final price, you can calculate the discount percentage:
Discount Percentage = (Original Price – Final Price) ÷ Original Price × 100%
For example, if an item originally costs $80 and is on sale for $60:
Discount Percentage = ($80 – $60) ÷ $80 × 100% = $20 ÷ $80 × 100% = 0.25 × 100% = 25%
For more complex scenarios such as stackable discounts (multiple discounts applied sequentially), the calculations can become more involved.