How to Calculate Discount Percentages
The standard way to calculate a discount is by taking the percentage off the original price. This gives you the amount of money saved, which you then subtract from the original price.
The Discount Formula
- Savings = Original Price × (Discount % / 100)
- Sale Price = Original Price − Savings
- Final Price = Sale Price × (1 + Sales Tax / 100)
- Sale Price = Original Price − Savings
- Final Price = Sale Price × (1 + Sales Tax / 100)
Common Sale Percentages
| Discount | Math Shortcut |
|---|---|
| 10% Off | Multiply original price by 0.90 |
| 25% Off | Divide original price by 4, subtract that from original Or multiply by 0.75 |
| 50% Off | Divide original price by 2 |
| Buy 1 Get 1 Free | Effectively 50% off |
Note: Discounts are typically applied to the original price before sales tax is added. Taxes are then calculated on the sale price.