How Do You Calculate Discount Price and Total Dollars Saved?
To calculate the discounted sale price of an item, multiply the original price by the discount percentage divided by 100 to determine total savings, then subtract those savings from the original price. For example, a 20% discount on a $150 jacket saves $30, bringing the final price to $120.
If you are evaluating relative price growth or percentage markups across product lines, try our Percentage Change Calculator.
How Does Stacked Coupon Discounting Work?
Retail stores frequently allow shoppers to combine storewide clearance sales with secondary promo code coupons (stacked discounts). However, secondary discounts apply to the already reduced sale subtotal rather than the original price tag.
For example, if a $100 pair of shoes is marked 20% off, the subtotal becomes $80. Applying a secondary 10% coupon saves 10% of $80 ($8), resulting in a final subtotal of $72 (a total effective discount of 28%, not 30%).
Calculating Sales Tax on Discounted Items
In almost all sales tax jurisdictions, local sales tax is computed on the net subtotal after all promotional discounts and store coupons are subtracted. Calculating tax on the reduced price ensures you do not overpay sales tax at the register.
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