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Discount Calculator

Calculate the final price after a percentage or fixed discount — with optional tax. See exactly how much you save in seconds.

Tax included?

How Discount Calculation Works

A discount reduces the original price by a fixed amount or a percentage. The two most common types:

Percentage discount

Final price = original price × (1 − discount % / 100)

A 25% discount on $120: 120 × 0.75 = $90. Savings: $30.

Fixed discount

Final price = original price − discount amount

$15 off $120: 120 − 15 = $105. Savings: $15.

Adding Tax

When tax is not included in the listed price, it is applied after the discount — meaning tax is calculated on the sale price, not the original price. This benefits the buyer compared to applying tax first.

Final price = (original price − discount) × (1 + tax rate / 100)

Example: $120 item, 25% discount, 8% sales tax:

  1. Discounted price: 120 × 0.75 = $90
  2. Tax: 90 × 0.08 = $7.20
  3. Final price: $90 + $7.20 = $97.20

In many countries (EU, UK, Australia), prices are displayed with tax already included (VAT-inclusive). In those cases, no additional tax calculation is needed — set “Tax included? Yes” and the calculator shows the discounted price directly.

Percentage Saved

Regardless of whether the discount was percentage-based or fixed, you can always express the saving as a percentage of the original price:

Savings % = (discount amount / original price) × 100

This lets you compare deals at a glance — a “$15 off $50” offer (30% off) is better than “20% off $60” ($12 off, 20% off).

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Frequently Asked Questions

How do I calculate the price after a percentage discount?

Multiply the original price by (1 − discount / 100). For example, a 20% discount on $80: 80 × (1 − 0.20) = 80 × 0.80 = $64. The savings are $80 − $64 = $16.

How do I calculate the discount percentage from two prices?

Divide the saving by the original price and multiply by 100. For example, if an item costs $80 and is on sale for $64, the discount is (80 − 64) / 80 × 100 = 20%.

Is tax applied before or after the discount?

In most retail contexts, tax is applied to the discounted (sale) price, not the original price. This calculator applies tax to the price after the discount has been deducted.

What is the difference between a percentage discount and a fixed discount?

A percentage discount (e.g. 20% off) scales with the original price — a 20% discount on $200 saves $40, while on $50 it saves $10. A fixed discount (e.g. $15 off) is a flat reduction regardless of the original price.

How do I find the original price from a discounted price?

Divide the sale price by (1 − discount rate). For example, if an item is $64 after a 20% discount, the original price is 64 / (1 − 0.20) = 64 / 0.80 = $80.