Calculate discounts, savings, and final prices. Compare prices with multiple discounts, tax inclusion, and percentage calculations.
A discount is a reduction in the regular price of a product or service. Discounts are commonly expressed as a percentage off the original price or as a fixed amount subtracted from the original price.
Basic Discount Formulas:
Percentage Discount: Discount Amount = Original Price × (Discount Percentage ÷ 100)
Final Price: Final Price = Original Price - Discount Amount
Effective Discount Percentage: (Discount Amount ÷ Original Price) × 100
Reverse Calculation (Find Original Price): Original Price = Final Price ÷ (1 - (Discount Percentage ÷ 100))
| Discount Type | Description | Example |
|---|---|---|
| Percentage Off | A percentage reduction from the original price | 20% off $100 = $80 final price |
| Fixed Amount Off | A specific dollar amount subtracted from the price | $20 off $100 = $80 final price |
| Buy One Get One (BOGO) | Get one item free when purchasing another | Buy one at $50, get second free = $25 each |
| Multi-tier Discount | Discount increases with quantity purchased | 10% off 1 item, 20% off 3+ items |
| Seasonal/Clearance | Discounts during specific seasons or to clear inventory | End-of-season sale: 40-70% off |
| Loyalty/Member Discount | Special pricing for members or loyal customers | 10% off for members only |
Important: Multiple discounts are applied sequentially, not added together. This is a common misconception in discount calculations.
Example Calculation: $100 item with 20% off, then an additional 10% off
1. First discount: $100 × 20% = $20 off → $80 after first discount
2. Second discount: $80 × 10% = $8 off → $72 final price
Not: 20% + 10% = 30% off $100 = $70 (This is incorrect!)
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