Use this discount calculator to find the exact amount you’ll pay when the discount is applied to the product you’re interested in. Just enter the price information into the boxes to calculate what you’ll pay after the discount is applied. Be sure to scan the calculator’s QR code to access it on your smartphone while shopping. 

Discount Calculator

How to use: Enter information in the boxes below to calculate the price you’ll pay after the discount is applied.

Scan this QR code on your mobile to access the calculator on your phone.
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What You Pay

$0

What You Save

$0

How to Calculate Discounts 

Calculating discounts by hand isn’t complicated – you just need to understand the terminology and formulas.

  • Original price: the usual price of the product, or what the product normally costs without a discount
  • Discount rate: the percentage by which a product’s price is marked down or reduced 
    • The discount rate is sometimes referred to as the percentage discount
  • Discounted amount: the dollar amount by which a product’s price is reduced 
  • Price after discount: the total dollar amount owed after the discount is applied to the price

How to Calculate the Price After Discount

If the original price and the discount rate are known, here’s how to find the total amount you’ll pay after the discount is applied: 

1. Take the original sales price (the cost before the discount is applied).

2. Find the discount rate (the percentage marked on the discount).

3. Calculate the amount of money the discount will remove from the original price. Convert the discount percentage to a decimal before multiplying.

These steps can be seen as a two-part formula, shown below: 

  • Original Price Discount Rate = Discount Amount
  • Original Price – Discount Amount = Price After Discount

Example: You go to the store to buy a bag of dog food. The dog food, which is normally $10.00 a bag, has a promotion running and is now 20 percent off. Using the two-part equation and the above steps, we can calculate the price of the dog food after the discount is applied. Using the equation, you discover that the dog food is now $8.00 a bag instead of $10.00. 

1. Original Price Discount Rate = Discount Amount

  • $10.00 x 20% (or 0.20) = $2.00

2. Original Price – Discount Amount = Price After Discount

  • $10.00 – $2.00 = $8.00

How to Calculate Percentage Discount

If the original price and the price after discount are known, here’s how to calculate the percentage discount, or the discount rate. 

1. Divide the price after discount by the original price.

2. Subtract this percentage from 1.

3. Convert the percentage to a decimal.

The formula to calculate percentage discount is as follows: 

  • 1 – ( Price After Discount Original Price) = Percentage Discount

Example: While shopping, you notice that the laundry detergent you normally purchase for $6.00 is now on sale for $4.50. Using the percentage discount formula, you find that the laundry detergent has a discount of 25 percent. 

  • 1 – (Discounted Price Original Price) = Percentage Discount
    • 1 – ($4.50 $6.00) = 0.25 or 25%

Types of Discounts

There are many types of discounts retailers, wholesalers, and manufacturers offer for their products, but they can generally be grouped into four main categories. 

Quantity Discounts

These discounts are generally given to purchasers who buy a certain number of units or products. These discounts are intended to encourage larger purchases and can help move inventory through the system faster.

  • Example: A grocery store offers a “buy two, get the third 30 percent off” discount on tubes of toothpaste after receiving too many from the wholesaler. 

Seasonal Discounts

Retailers may place discounts on products that are no longer in season. This helps them clear out old inventory and make room for new products. 

  • Example: The day after Christmas, a gift shop offers 40 percent off remaining decorations to customers hoping to save money on next year’s holiday. 

Promotional Discounts

These discounts are typically given to purchasers in order to generate interest around a new product or service. 

  • Example: A smoothie restaurant gives customers 15 percent off their new summer flavor to encourage sales.

Trade Discounts

These discounts are generally given between retailers and wholesalers. They encourage preferential treatment and create business relationships between entities. 

  • Example: A fabric wholesaler gives interior designers 15 percent off if they use the wholesaler’s fabric in an upcoming project. 

Best Time to Find Discounts for Everything

Throughout the year, products go in and out of season. Here’s a breakdown of when to buy these discounted items. 

January Discounts 

The first month of the year comes with resolutions to get fit and be healthy. As a result, you’ll likely see great sales on fitness gear, gym memberships, and athletic apparel. 

Also be sure to check out any leftoftover Christmas items still on the shelves. These will be heavily discounted and you’ll be able to stock up for next year. 

  • Extra savings: National Spaghetti Day is on January 4.

February Discounts

February boasts major sales on home electronics, especially before the Super Bowl. Act quickly to get a new TV before the big game. 

Presidents’ Day is also in February, so you’ll have even more opportunities to save on everything from furniture to travel. 

  • Extra savings: National Frozen Yogurt Day is February 6. 

March Discounts

Tax Day is around the corner and many companies will offer discounts for tax prep software. You may also get a bonus discount for filing early. 

Be sure to look for St. Patrick’s Day deals on and before March 17, too!

  • Extra savings: National Pi Day is March 14. 

April Discounts 

It’s time for spring cleaning, which means cleaning supplies and vacuum cleaners will go on sale during the month. Look for markdowns in store and straight from the manufacturer to get the most bang for your buck. 

  • Extra savings: Stock up on candy and stuffed animals the day after Easter! 

May Discounts

Memorial Day means big sales on furniture, mattresses, and home goods. Look for discounts on home decor and furniture from big-box stores!

Small kitchen appliances like coffee makers and blenders are sometimes included in Memorial Day sales – stock up for yourself or to use as gifts for the wedding season. 

  • Extra savings: National Hamburger Day is May 28. 

June Discounts 

June may be a quieter month for major sales, but that doesn’t mean there aren’t discounts. As the summer progresses, gyms may be seeking new memberships – be sure to shop around for the best rate!

The Victoria’s Secret Semi-Annual Sale falls in June, making it the perfect time to buy new undergarments, lingerie, and apparel.  

  • Extra savings: National Doughnut Day is June 5. 

July Discounts 

Retailers love Christmas in July – look for July Black Friday sales on electronics and home goods, as well as discounts on summer apparel and patriotic gear. 

  • Extra savings: National Ice Cream Day is July 19. 

August Discounts 

End-of-summer sales begin in August, so hunt for great deals on summer clothes, swimsuits, outdoor furniture, and outdoor gear. School and office supplies will also have big discounts as the new school year approaches. 

  • Extra savings: National Waffle Day is August 24. 

September Discounts

Labor Day means huge sales on mattresses and furniture. If you didn’t capitalize on Memorial or Presidents’ Day sales, this is your last major chance of the year to buy a discounted new mattress. 

Additionally, Apple’s annual keynote falls during September, meaning current iPhones may receive discounts in anticipation of the newest models. 

  • Extra savings: National Coffee Day is September 29. 

October Discounts 

With temperatures dropping, the spookiest month usually includes good sales on outdoor and patio furniture

October is also a good time to jump on Fall clothing sales, since new inventory has now been on shelves for a few weeks.  

  • Extra savings: National Taco Day is October 4. 

November Discounts 

Black Friday is the biggest shopping day of the year, with massive sales on everything from electronics to bath products

  • Extra savings: National Sandwich Day is November 3. 

December Discounts

Many Black Friday sales spill over into December and with Christmas almost here, the discounts are too good to pass up! 

The day after Christmas is the perfect time to buy decorations for next year as they’ll be heavily discounted to encourage inventory turnover.  

  • Extra savings: National Cookie Day is December 4. 

FAQ 

How Do I Calculate a Discount Percentage?
To calculate discount percentage, follow these steps:

  1. Subtract the price after discount from the price before the discount. 
  2. Divide this number by the price before the discount 
  3. Multiply by 100 to get a percentage. 

What are the Types of Discounts?
The four types of discounts are:

  1. Quantity discounts: given to shoppers who buy a certain number of units or products
  2. Seasonal discounts: discounts on products that are no longer in season
  3. Promotional discounts: given to generate interest around a new product or service
  4. Trade discounts: given between retailers and wholesalers to create relationships

How Do I Take 10% Off a Price?
Follow these steps to take 10% off a price:

  1. Multiply the original price by 0.1
  2. Subtract this number from the original price 
  3. This is the price after the 10% discount 

Example:

  1. $19.99 x 0.1 = $1.99
  2. $19.99 – $1.99 = $17.99
  3. Price after 10% discount = $17.99

How Do I Take 20% Off?
Follow these steps to take 20% off a price:

  1. Multiply the original price by 0.2
  2. Subtract this number from the original price 
  3. This is the price after the 20% discount 

Example:

  1. $5.45 x 0.2 = $1.10
  2. $5.45 – $1.10 = $4.35
  3. Price after 20% discount = $4.35

What is the Discount Percentage Formula?
The discount percentage formula is:

  • (Price After Discount / Original Price) = Percentage Discount

What is a Discount Rate?
The discount rate is the percentage by which a product’s price is marked down or reduced. For example, if a product is 20 percent off the original price, its discount rate is 20 percent.

Before you head to the grocery store or make your next online purchase, be sure to look for discounts and coupons and use this discount calculator to help you find out how much you’re saving! 

Sources 

Economics Discussion | Lumen Learning

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