How to Calculate Discount Percentage

A discount reduces an item's original price. Calculating the discount percentage lets you understand the actual saving instead of relying only on a sale label.

Discount Percentage Formula

Subtract the sale price from the original price, divide the saving by the original price, and multiply by 100.

Discount Percentage = ((Original Price − Sale Price) ÷ Original Price) × 100

Example

If an item was originally priced at 200 units and is now 150 units, the saving is 50 units. Divide 50 by 200 and multiply by 100 to get a 25% discount.

Calculate the Sale Price from a Discount

If you know the original price and the discount rate, calculate the saving first.

Discount Amount = Original Price × Discount Rate ÷ 100

Sale Price = Original Price − Discount Amount

Example of a 20% Discount

For an original price of 100 units, a 20% discount reduces the price by 20 units, leaving a final price of 80 units.

When There Are Multiple Discounts

Separate discounts are normally applied one after another rather than simply added together. For example, a 20% discount followed by 10% off the reduced price results in a total reduction of 28%, not 30%.

Use a Discount Calculator

A discount calculator can show the saving and final price quickly, making it easier to compare offers and check sale calculations.