How do I calculate a percentage discount?

Multiply the original price by the discount percentage and divide by 100 to get the discount amount. Subtract from the original price to get the final price. Example: $150 × 20% = $30 discount → $120 final price.

How do I find the original price before a discount?

Use the reverse formula: Original Price = Discounted Price ÷ (1 − Discount Rate). If you paid $120 after a 20% discount, the original price was $120 ÷ 0.80 = $150.

What is the difference between a discount and a markdown?

A discount is a temporary price reduction for promotions, sales, and trade pricing. A markdown is a permanent reduction in the listed retail price, typically for discontinued or clearance stock.

Does this calculator include VAT or sales tax?

No — this calculator works on pre-tax prices. Calculate the discounted price here, then add the applicable tax using the VAT Calculator or US Sales Tax Calculator.

How do stacked discounts work?

Stacked discounts apply sequentially, not additively. A 20% discount followed by a 10% discount is not 30% off. $100 × 80% = $80, then $80 × 90% = $72. Combined saving is 28%, not 30%. Run this calculator twice to model stacked discounts.

What is a trade discount vs a cash discount?

A trade discount is a reduction offered to business customers as part of supply chain structure. A cash discount (e.g. "2/10 Net 30") is an incentive to pay quickly — 2% off if paid within 10 days.

Discount Calculator

Enter an original price and discount percentage to calculate the discount amount, final price and savings. Switch to reverse mode to find the original price from a discounted price and discount rate.

Enter an original price and discount percentage to find the final price and amount saved — or work backwards from a discounted price to recover the original. Used for product pricing, sales promotions, and B2B quoting.

Retail pricingSales promotionsB2B quotesEcommerce

Original Price ($)

Discount Percentage (%)

Formula

Discount Amount = Original Price × (Discount % ÷ 100) | Final Price = Original Price − Discount Amount | Reverse: Original Price = Discounted Price ÷ (1 − Discount % ÷ 100)

The forward calculation finds the final price from an original price and a discount rate. The reverse calculation recovers the original price when you know the sale price and the discount percentage that was applied — useful for checking supplier discounts or auditing invoices.

Worked Example

A product is listed at $150 with a 20% promotional discount:

Discount amount = $150 × 20% = $30.00

Final price = $150 − $30 = $120.00

Reverse example — a supplier invoices you $84 after applying a 30% trade discount:

Original price = $84 ÷ (1 − 0.30) = $84 ÷ 0.70 = $120.00

The original list price was $120, the discount was $36, and you paid $84. Use the reverse mode to verify supplier trade discounts on invoices.

FAQ

Frequently Asked Questions

Use this in your workflow

After finding the discounted price, use the Margin Calculator to confirm the discounted price still delivers an acceptable gross margin. Use the VAT Calculator to add the applicable tax on top of the final price. Browse all Business Calculator Hub tools.

When to use this calculator

→Quickly finding the final price and saving amount during a promotional sale or clearance event
→Verifying supplier trade discounts by recovering the original list price from a discounted invoice
→Preparing B2B quotes with volume or loyalty discounts applied to standard list prices
→Cross-checking ecommerce product pricing to confirm the stated savings percentage is accurate

Related calculators

Margin CalculatorCheck gross profit % after a discount is applied Markup CalculatorSet a selling price from cost plus markup %VAT CalculatorAdd or remove VAT on the discounted final price Commission CalculatorCommission earned on the discounted sale price