What is the sale price after a percentage discount?
A percentage discount is calculated from the original price, then subtracted once. The amount saved and final price answer different questions and should be displayed separately.
Original price minus its discounted share
After first discount = Price × (1 − Discount₁ ÷ 100)Final price = After first discount × (1 − Discount₂ ÷ 100)Effective discount = (Price − Final price) ÷ Price × 100One advertised discount
The default example converts the entered percentage into a currency reduction and subtracts it from the listed price.
Illustrative inputs; currency amounts below use USD. Rates and prices are assumptions, not live quotes.
- Original price
- $250.00
- Discount
- 30%
- Extra discount at checkout
- 0%
Step-by-step calculation
- First reduction: 250 × (1 − 30 ÷ 100) = 175.
- Apply the second discount to that reduced price: 175 × (1 − 0 ÷ 100) = 175.
- Savings = 250 − 175 = 75; effective discount = 30%. Successive percentages are not simply added.
Intermediate figures are rounded for reading. Results use the full calculation precision.
Savings amount versus amount payable
Discount amount grows with either the original price or discount rate. The final price is the portion of the original that remains after the reduction.
Why stacked discounts need another step
Successive discounts are not added together. A second discount normally applies to the already reduced price and therefore has a smaller base.
- The discount is applied once to the entered original price.
- No tax, coupon cap, fixed reduction or shipping charge is added.
- The displayed result uses standard monetary rounding.
Calculations related to discount
The following tools examine neighbouring parts of the same calculation without changing the inputs or assumptions used above.
References
Sources and conventions
- OpenStax: percentage arithmetic
Mathematical background; any tax, tip or discount percentage in the example is user-supplied.
Quick answers
Frequently asked questions
Do two 20% discounts equal a 40% discount?
No. The second 20% is applied after the first reduction, producing a 36% effective discount.
How is the effective discount calculated?
Original price minus final price is divided by original price and multiplied by 100.
Can I use zero for the second discount?
Yes. The final price will then equal the price after the first discount.
Calculation method and limitations · Report an error
Educational content only. This guide is not financial advice.