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Discount calculator

Enter a price and a discount to get the sale price and the saving, or enter both prices to find the discount. Add your cost to see how much margin a sale leaves you.

  • Free, no sign-up
  • Works in your browser
  • Updated November 2026

What do you know?

$
%
$

Optional, for sellers. Shows the margin left after the discount.

Sale price

$60.00

Customer saves
$20.00
Margin before discount
55%
Margin after discount
40%
Profit per unit after discount
$24.00
Extra units needed for the same profit
83.3%

How to use the discount calculator

  1. 1Choose whether you know the discount percentage or the price after the discount.
  2. 2Enter the original price before any discount.
  3. 3Enter the discount percentage, or the sale price, to get the other.
  4. 4If you are the seller, enter your cost per unit to see the margin and profit left after the discount.
  5. 5Check how many more units you would need to sell to earn the same gross profit as at full price.

How to work out a discount

Multiply the original price by the discount as a decimal to get the saving, then subtract it. 25% off $80 is a $20 saving, so the sale price is $60.

A quicker way is to multiply by what is left: 25% off means paying 75%, and $80 × 0.75 = $60.

Sale price = Original price × (1 − Discount % ÷ 100)

Finding the discount between two prices

If a price dropped from $80 to $60, subtract the new price from the old one and divide by the old price. $20 ÷ $80 is a 25% discount.

Discount % = (Original price − Sale price) ÷ Original price × 100

What a discount does to your margin

For a seller, the whole discount comes out of profit, because the cost of the item does not change. A 25% discount on an item with a 55% margin does not leave a 30% margin; it cuts profit per unit from $44 to $24 on an $80 item that costs $36.

That is why discounts need extra volume to pay off. To earn the same gross profit, divide the full-price profit by the discounted profit. Here $44 ÷ $24 is 1.83, so you need to sell 83% more units just to stand still.

Extra units needed = (Profit at full price ÷ Profit after discount − 1) × 100

Discounts and sales tax or VAT

In the US and Canada, sales tax is usually added at checkout on the discounted price, so the discount is worked out before tax. In the UK and EU, shelf prices normally include VAT, and a percentage off the shelf price reduces the VAT by the same share. Either way, work out your margin on prices without tax. Rules on coupons and tax differ by place, so check your local rules.

Worked example

A clothing shop sells a jacket for $80 that costs it $36, and plans a 25% off weekend sale.

Original price$80.00
Discount25%
Sale price$60.00
Customer saves$20.00
Margin before discount55%
Margin after discount40%
Profit per jacket$44.00 → $24.00
Extra sales needed for the same profit83.3%

Customers save $20 and pay $60. The shop still makes $24 per jacket at a 40% margin, but needs to sell 83% more jackets than usual to earn the same total profit.

Frequently asked questions

How do I calculate 20% off a price?

Multiply the price by 0.8. For $45, that is $45 × 0.8 = $36, a saving of $9. For any discount, multiply by 1 minus the discount as a decimal.

Is 20% off and then another 10% off the same as 30% off?

No. Stacked discounts apply one after the other. 20% off $100 is $80, and 10% off $80 is $72, a total discount of 28%, not 30%.

How much can I discount and still make a profit?

Any discount smaller than your margin leaves some profit per unit. If your margin is 40%, a 40% discount sells at cost and anything more sells at a loss. Remember that per-sale fees and shipping still apply on discounted orders.

Is a discount the same as a markdown?

They use the same maths. A markdown usually means a permanent price cut on stock, while a discount is often temporary or tied to a code or customer group.

Should I offer a percentage off or a fixed amount off?

On low-priced items a percentage often sounds bigger, and on expensive items a fixed amount often does: 10% off a $400 item sounds smaller than $40 off, though they are equal. Use this calculator to convert one into the other.
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Last reviewed November 2026. Results are estimates for general information, not financial, tax or legal advice. How we check our tools.