How to calculate a discount

Sale price = original price × (1 − discount ÷ 100)

30% off a $45 item: 45 × 0.70 = $31.50, a saving of $13.50. To find just the saving, multiply the price by the discount: 45 × 0.30 = $13.50.

Stacking two discounts

A second discount applies to the reduced price, not the original. 25% off, then an extra 10% off, on an $80 item: 80 × 0.75 = $60, then 60 × 0.90 = $54. That’s a total discount of 32.5%, not 35%. Use the extra discount box to see the real total.

How to work out percent off from two prices

Divide the saving by the original price: a $60 item on sale for $45 saves $15, and 15 ÷ 60 × 100 = 25% off. The percent change calculator does this for any two numbers.

Discounts and your margin

A discount comes straight out of your profit. If an item costs you $6 and sells for $10 (a 40% margin), a 20% discount brings the price to $8 and your profit from $4 to $2: half your profit for a fifth off the price. Check the margin before planning a sale with the profit margin calculator.

Ideas for running a sale

Planning a holiday push? See our Small Business Saturday ideas.

Frequently asked questions

How do I calculate a discount?

Multiply the price by the discount percentage to get the saving, then subtract it. 30% off $45 is a $13.50 saving, so $31.50.

Do two discounts add up?

No. A second discount applies to the already-reduced price. 25% off and then 10% off is a 32.5% total discount, not 35%.

How do I work out the percent off from two prices?

Divide the saving by the original price and multiply by 100. From $60 down to $45 is a $15 saving, which is 25% off.