How the Percent Off Calculator works
This tool answers the everyday shopping question: if an item costs a certain amount and carries a percentage discount, what do you actually pay? It uses the standard percent-off formula, then optionally layers a second stacked discount and a sales tax rate so the final number matches what shows up at checkout.
The formula
For an original price P and a discount rate d (as a percentage), the discounted price is:
Final Price = P × (1 − d ÷ 100)
The amount you save is simply the original price minus the final price: Savings = P − Final Price, which is algebraically the same as P × (d ÷ 100). If a second stacked discount applies, it is calculated on the already-discounted price, not the original price — the calculator applies each discount in sequence.
Worked example
Take a $100 item marked 20% off. The discount is $100 × 0.20 = $20, so the final price is $80. Now add a second, stacked discount of 10% (a common "extra 10% off clearance" scenario): 10% of $80 is $8, bringing the price to $72. The two discounts together saved $28 on a $100 item — an effective discount of 28%, not the 30% you might get by simply adding 20% and 10%.
Why stacked discounts don't add up
Percentages taken in sequence multiply rather than add. Mathematically, two discounts of d₁ and d₂ leave you paying (1 − d₁/100) × (1 − d₂/100) of the original price. For 20% and 10%, that's 0.80 × 0.90 = 0.72, or 72% of the original price — 28% off. The gap between "add the percentages" and "multiply the remaining fractions" grows as the discounts get larger, so it matters most on big clearance and coupon-stacking deals.
Where sales tax fits in
In most U.S. states, sales tax is charged on the price you actually pay at the register — after any discounts, not before. This calculator follows that convention: it applies the sales tax rate you enter to the price after both discounts, so the final figure reflects what a typical receipt would show. Enter 0% if your item is tax-exempt or if you want to compare pre-tax prices only.
Reading the results
- Final price you pay: the bottom-line number after all discounts and tax.
- You save: the dollar difference between the original price and the price after discounts (before tax).
- Price after discount: useful for comparing against a listed "sale price" before tax is added.
- Effective discount: the combined percentage off the original price — handy for comparing a stacked-discount deal against a single flat discount.