How a percentage discount works
Multiply the original price by the discount rate as a decimal to find the savings. Subtract that amount from the original price. A 25% discount on $120 saves $30 and leaves a $90 sale price before tax.
Applying sales tax
This calculator applies tax after the discount, which is common but not universal. Multiply the discounted subtotal by one plus the tax rate. Local rules may treat coupons, rebates, and tax differently.
Stacked discounts are not added
Two consecutive 20% discounts do not equal 40% off. The second reduction applies to the already discounted price, producing a combined reduction of 36%.
Check the full checkout example
On a $120 item with 25% off, the pre-tax sale price is $90 and savings are $30. If 8% tax applies after the discount, tax is $7.20 and the final total is $97.20. Reverse-check the discount by dividing $90 by $120: the customer pays 75% of the starting price, so the reduction is 25%. Compare the final amount—not only the advertised percentage—when shipping, fees, quantity, or tax treatment differs.
Separate discounts, rebates, and unit price
A mail-in rebate may be paid later and may not reduce the taxable amount at checkout. A “buy more” offer changes quantity as well as price, so compare cost per usable unit. Membership fees or subscriptions can make a one-item discount misleading unless their cost is allocated across expected purchases. Save the original price evidence, promotion terms, eligible dates, exclusions, and return policy. The calculator accepts one immediate percentage reduction and cannot verify whether a reference price or promotion is genuine.
Currency formatting uses US dollars. Verify tax treatment and checkout totals with the seller.