Discount Calculator: Sale Price & Compounded Reductions
Calculate marked-down sale prices, cash savings, and accurate sequential multi-tier discounts.
Enter Calculation Values
Calculation Results
Auto-updates liveFinal Discounted Price
$80.00
- Total Amount Saved: $20.00
- Original List Price: $100.00
- Effective Overall Discount: 20.00%
How Sequential Discounts Work
Single discounts apply straightforward multiplication. However, sequential "stacked" discounts are never simply added together:
Discount Amount = Original Price × (Discount % / 100)
Intermediate Price = Original Price - First Discount
Second Discount Amount = Intermediate Price × (Second Discount % / 100)
Final Price = Intermediate Price - Second Discount Amount
Intermediate Price = Original Price - First Discount
Second Discount Amount = Intermediate Price × (Second Discount % / 100)
Final Price = Intermediate Price - Second Discount Amount
Compounded Example: A $100 coat with 20% off plus an extra 10% coupon:
1. 20% off $100 drops the price to $80.00 (savings $20).
2. 10% off the remaining $80 drops it to $72.00 (additional savings $8).
3. Total savings is $28 (28% effective discount), NOT 30%.
1. 20% off $100 drops the price to $80.00 (savings $20).
2. 10% off the remaining $80 drops it to $72.00 (additional savings $8).
3. Total savings is $28 (28% effective discount), NOT 30%.
Frequently Asked Questions
Why is 20% off plus 10% off not equal to 30% off?
Because the second 10% discount is taken off the lower intermediate price ($80), rather than the original $100.
Can a discount be greater than 100%?
No. Retail discounts range from 0% (full price) to 100% (free).
Related Calculators & Resources
- Sales Tax Calculator — Calculate sales tax on net prices or reverse-calculate pre-tax amounts from gross receipts.
- Profit Margin Calculator — Determine exact net profit and profit margin percentage from revenue and total costs. Accurately detect losses and analyze cost breakdown ratios.
- Markup Calculator — Calculate percentage markup on cost, examine the corresponding profit margin, or input target markup to solve for required retail selling price.
Helpful Reading
Learn more about strategic pricing in our guide: Business Pricing Masterclass.