How Discounts are Calculated (Including Successive Discounts)
Learn how to calculate sale prices, percentage off, and how successive (multiple) discounts actually stack mathematically.
Consumer Mathematics & Pricing Analytics Specialists
The Basic Discount Formula
To find the final sale price after a single discount:
Discount Amount = (Original Price × Discount Percentage) / 100 Sale Price = Original Price - Discount Amount
Shortcut: If an item is 20% off, you are paying 80% of the original price. Simply multiply the original price by 0.80.
Successive Discounts (Discounts on Discounts)
Retailers sometimes offer "20% off, plus an additional 10% off at checkout." This is called a successive discount.
Crucial Math Rule: Successive discounts do not add up directly. A "20% + 10%" discount is NOT a 30% discount.
How to calculate successive discounts:
Apply the first discount to the original price, then apply the second discount to the new, already reduced price.
Example: A $100 jacket is on sale for 20% off, plus an extra 10% off.
- Apply 20% off $100: The jacket is now $80.
- Apply 10% off the new $80 price: 10% of 80 is $8.
- Final Price: $80 - $8 = $72.
Total actual discount = $28 off $100, which is exactly a 28% effective discount, not 30%.
Calculate Sale Prices Online
To calculate final prices, successive promotional discounts, and exact cash savings while shopping, use our free Discount Calculator.