A complete guide — with formulas and examples — to discounted prices, discount rates, stacked (sequential) discounts, and cart totals.
A discount calculation finds the sale price a shopper pays after a discount rate or a fixed dollar amount is subtracted from a product's original price. A single discount is straightforward; most of the confusion shows up with the stacked (sequential) discounts common in promotions, and with whether a price tag is tax-included or tax-excluded. This calculator computes in three directions — price-to-sale-price, old-to-new-price, and sale-to-original-price (reverse) — plus stacked discounts, and shows exactly why sequential discounts are never simply added together.
How do you calculate a discounted price?
Quick answerDiscounted price = Price × (1 − Discount rate ÷ 100). For example, a $500 item with a 15% discount costs 500 × 0.85 = $425, a savings of $75. With a fixed dollar discount, it's even simpler: Discounted price = Price − Discount amount.
How are stacked (sequential) discounts calculated? Do they add up?
Quick answerIn a stacked discount, each rate is applied separately to the price left over from the previous discount — the rates are never simply added together. Formula: Final price = Price × (1−rate1/100) × (1−rate2/100) × ... For example, a 20% discount followed by a 10% discount equals 1 − 0.80×0.90 = 28% total, not 30%.
This is the most commonly misunderstood part of discount math. Most simple calculators only support a single discount rate; the Stacked Discount tab above lets you chain as many sequential discounts as you like and shows both the final price and the "equivalent single discount" rate at the same time.
How do you find the discount rate from an old and a new price?
Quick answerRate (%) = ((Old price − New price) ÷ Old price) × 100. For example, an $800 item that drops to $600 has a discount rate of (800−600)÷800×100 = 25%. Just enter both prices in the "Old → New" tab.
What should you watch for with a discount on a tax-included price?
Quick answerA price tag is usually tax-inclusive; the discount is applied directly to that amount, and the discounted price comes out tax-inclusive too. To see the pre-tax equivalent, divide the discounted price by (1 + tax rate ÷ 100). Use "Advanced settings" above to enter your local sales tax rate and whether the entered price already includes it.
How do you calculate the total discount for a cart with multiple items?
Quick answerEach item's discounted price is calculated separately, then added together for the cart total. The cart's average (effective) discount rate is the total savings divided by the total normal price, and can differ from a simple average if items have different rates. Add your own items in the "Cart" section below.
What's the real discount rate on "buy X, pay for Y" promotions?
Quick answerReal rate = (1 − Quantity paid ÷ Quantity bought) × 100. "Buy 3, pay for 2" equals (1−2/3)×100 ≈ 33.3% off, and "buy 2, pay for 1" equals 50% off. Use the mini tool below with your own unit price and quantities to see the total savings.