How to Calculate a Discounted Price
Whether you're shopping for groceries or evaluating a business software subscription, understanding how discounts work ensures you never pay more than you should.
The Percentage Discount Formula
To find the sale price manually, follow these steps:
- Convert the percentage to a decimal (e.g., 20% becomes 0.20).
- Multiply the original price by that decimal to find the Savings.
- Subtract the savings from the original price to find the Sale Price.
Don't Forget Sales Tax!
Most retailers apply sales tax after the discount has been deducted. For example, if a $100 item is 20% off, the 7% tax is usually calculated on the $80 subtotal, not the original $100. Our calculator accounts for this to give you a true "out-the-door" price.