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
- Discount slow movers, not best sellers. Sales should clear stock that isn’t moving.
- Use bundles (“3 for $25”) to raise the average sale instead of cutting every price.
- Set an end date. A time limit creates urgency and protects your normal prices.
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.