Understanding your result
Savings is based on original price. Tax is applied after the discount. Effective reduction compares the tax-inclusive final price with the original.
For a restaurant bill after a discount, enter the resulting pre-tax subtotal in the Tip Calculator to calculate gratuity and each person’s share.
The formula
A 20% discount leaves 80% of the original price. Successive discounts should be entered as their combined effect rather than simply added.
Worked example
A 100 item at 20% off costs 80 before tax. With 10% tax on 80, the final price is 88—12% below the original price.
How to use this calculator
- Enter the original price and the discount percentage shown for the item.
- If needed, open the additional options and enter the tax percentage applied to the discounted price.
- Compare discount savings with the final price; the effective reduction includes the added tax and may be smaller than the advertised discount.
Discount before tax
Retail systems commonly apply eligible discounts before calculating sales tax, but local rules can differ.
The optional tax field is a simple percentage of the discounted subtotal.
Stacked discounts
A further 10% off an already discounted 80 removes 8, not 10 from the original 100.
Two discounts of 20% and 10% combine to 28%, because 0.8 × 0.9 leaves 72%.
Assumptions & limitations
What this calculation assumes
- One percentage discount.
- Tax applies to discounted subtotal.
- Amounts use one currency.
What to keep in mind
- Fixed coupons, shipping, and jurisdictional tax rules are excluded.
- Effective reduction can be negative if tax exceeds savings.
- Retail rounding may differ by a cent.
Common questions
How do I combine two discounts?
Multiply the remaining-price factors, then subtract from 100%.
Is tax part of the amount saved?
No. Savings reports the discount; effective reduction accounts for tax.
Can a discount exceed 100%?
This calculator limits discount to 100%.