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Discount calculator: the sale price, and what it does to your profit

The short answer

To work out a discount, multiply the price by the percent off and subtract it: 20% off $80 is $16 off, so the sale price is $64. Two discounts don’t add up: 20% off and then 10% off is 28% off, not 30%. If that item costs you $40, profit falls from $40 to $24, so you’d need 1.7 times the sales to match it.

Get the sale price from any percent off, stack a second discount, add sales tax, and see what the promotion really does to your profit.

The sale

Taken off the reduced price, like an extra 10% off at the register.
Like $5 off with a coupon, taken after any percent off.
Shows what the sale does to your profit.

The sale price

$64.00

$16.00 off, which is 20% off the regular price.

Profit on a sale at the regular price
$40.00 (50% margin)
Profit on a sale at this price
$24.00 (37.5% margin)

To make the same profit, you’d need 1.7 times the sales: 66.7% more.

How it works

How to calculate a discount

  • Percent off: sale price = price − (price × percent ÷ 100).
  • Amount off: price × percent ÷ 100.
  • Dollars off: sale price = price − the dollars off.
  • Two discounts: take the second off the new price, not the original.
Common discounts on a $100 price
Percent offAmount offSale price
10%$10.00$90.00
15%$15.00$85.00
20%$20.00$80.00
25%$25.00$75.00
30%$30.00$70.00
40%$40.00$60.00
50%$50.00$50.00

What a sale does to your profit

A sale can cost more than it looks. If an $80 item costs you $40, 20% off takes your profit from $40 to $24. That’s 40% less profit on each sale, so you’d have to sell 1.7 times as many just to stay even.

Before you run one, check your numbers with the break-even calculator and the margin calculator.

Common questions

How do I calculate a percentage discount?
Multiply the price by the percent and subtract it. 25% off $60 is $15 off, so the sale price is $45. Or multiply by what’s left: $60 × 0.75 = $45.
How do you calculate a 20% discount?
Multiply the price by 0.2 to get the amount off, then subtract it. On $50, that’s $10 off, so the sale price is $40. Or multiply by 0.8 to go straight to $40.
How do you calculate a 10% discount?
Move the decimal point one place to the left and subtract. 10% of $45 is $4.50, so the sale price is $40.50.
How do I take 30% off a price?
Multiply the price by 0.7. $60 becomes $42, which is $18 off.
Do two discounts add up?
No. The second comes off the reduced price. 20% off and then 10% off is 28% off in total, not 30%.
Is sales tax added before or after a discount?
Usually after a store discount, on the lower price. Manufacturer coupons can be treated differently, and rules vary by state, so check yours.
How much more do I have to sell to make up for a discount?
Divide your profit per sale at the regular price by your profit per sale at the discount. The calculator shows it when you enter what the item costs you.
How much discount can my business afford?
Less than your margin. Past that you lose money on every sale. Many owners set a floor they won’t go below, and use a time limit so the sale doesn’t become the new price.

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