Discount Calculator
Discount Calculator
Calculate savings and final price after sales tax.
Report Bug In the US retail environment, the price tag is just the starting point. Between "Doorhunter" sales, "BOGO" (Buy One Get One) deals, and state-specific Sales Tax, figuring out what you will actually pay is a math problem in itself. The Discount Calculator cuts through the marketing noise. It helps you calculate the real savings and prevents the shock of "Hidden Costs" at the checkout counter.
Especially during Black Friday or End-of-Season clearances, understanding how discounts "stack" (or don't stack) is the difference between a good deal and a marketing trick.
🏷️ The Sale Price Formula
Finding the discounted price is a simple two-step process. First, remove the discount percentage, then calculate the new value.
Variables Defined:
- Original Price: The MSRP or Sticker Price.
- Discount%: The percentage off (e.g., 20% = 0.20).
- Complement: If an item is 30% off, you are paying 70% of the price.
🛍️ Scenario: The "Double Discount" Trap
You find a $100 Jacket on a "50% Off Clearance" rack. You also have a coupon for "Extra 20% Off." Does this mean 70% off? No. Let's look at the math of "Stacking."
| CHECKOUT SUMMARY | |
|---|---|
| ITEM: Winter Jacket | $100.00 |
| LESS: Clearance (50%) | - $50.00 |
| New Subtotal: | $50.00 |
| LESS: Coupon (20% of $50) | - $10.00 |
| PLUS: NY Sales Tax (8.875%) | + $3.55 |
| TOTAL CHARGE | $43.55 |
| Total Savings: 60% (Not 70%) | |
Shopper's Insight: Retailers love "stacking" because calculating 20% off the reduced price saves them money compared to a flat 70% off. Always apply the percentages sequentially, not additively.
US Retail Lingo: BOGO & Doorboters
- BOGO (Buy One Get One):
- BOGO Free: Effectively a 50% discount if you buy two items of the same price.
- BOGO 50% Off: Effectively a 25% discount on the total bundle (Item 1 is 100%, Item 2 is 50% = 150% / 2 = 75% paid).
- Sales Tax: In the US, the price on the shelf does NOT include tax. Tax rates vary by city and state (e.g., 0% in Oregon, ~9-10% in parts of California or New York).
- Price Match: Many US retailers (like Best Buy or Target) will match a competitor's lower price instantly if you show them the proof on your phone.
Frequently Asked Questions (FAQs)
How do I calculate 20% off in my head?
Move the decimal point one place to the left to find 10%. Then double that number.
Example: Shirt is $45. 10% is $4.50. Double it is $9.00 discount.
Is tax calculated before or after the discount?
After. You only pay sales tax on the amount you actually pay. If a $100 item is discounted to $50, you pay tax on the $50. This is a federal standard to prevent over-taxation.
What does "Up to 50% Off" mean?
This is a marketing trick. It means at least one item in the store is 50% off, but most items might only be 10% or 20% off. Always check the specific tag.
How do I calculate the original price if I know the sale price?
Divide the Sale Price by (1 - Discount%).
Example: You paid $80 for a coat that was 20% off. Original = 80 / 0.80 = $100.
What is a "Rebate"?
A rebate is a discount you get after the purchase. You pay the full price at the register and mail in a form (or file online) to get a check back later. Since you pay tax on the full price upfront, rebates are slightly less valuable than instant discounts.
