To calculate a discount percentage, subtract the sale price from the original price, divide the discount amount by the original price, and multiply by 100. For example, when an item is reduced from $80 to $60, the discount is $20. Dividing $20 by $80 and multiplying by 100 gives a discount of 25%.
Use the Percentage Calculator on the homepage to calculate the discount as a percentage of the original price.
An item reduced from $80 to $60 saves $20. The saving is 25% of the original $80 price.
What a Discount Percentage Means
A discount percentage shows how much of the original price has been removed. It expresses the saving as a share of the price before the reduction.
For example, a $20 saving may be a large discount on an $80 item but a small discount on a $500 item.
Calculating the percentage makes it easier to compare promotions, sale prices, coupons, clearance reductions, and competing offers.
Discount Percentage Formula
Subtract the sale price from the original price to find the discount amount.
Divide the discount amount by the original price because the discount is measured against the price before the sale.
Multiply the decimal result by 100 to convert it to a percentage.
Worked Example: Price Reduced from $80 to $60
The original price is $80 and the sale price is $60. Subtract $60 from $80 to find a discount amount of $20.
Divide $20 by the original price of $80. The result is 0.25.
Multiply by 100. The discount percentage is 25%.
Step 1: Confirm the Original Price
The original price is the price before the discount was applied. It may be shown as the regular price, list price, previous price, retail price, or manufacturer's suggested price.
The discount percentage should be calculated using this original amount as the denominator.
When several price reductions have occurred, make sure you know which previous price the advertised discount is based on.
Step 2: Find the Amount Saved
Subtract the sale price from the original price. If a jacket falls from $120 to $84, the amount saved is $36.
The amount saved is the numerical discount.
This figure is useful by itself, but the discount percentage allows the saving to be compared with discounts on differently priced products.
Step 3: Divide by the Original Price
Divide the saving by the original price. For the jacket example, calculate $36 ÷ $120.
The result is 0.30.
Dividing by the sale price would produce approximately 42.86%, which is not the discount percentage.
Step 4: Multiply by 100
Multiply the decimal result by 100. The decimal 0.30 becomes 30%.
The jacket has a 30% discount.
If the answer contains several decimal places, round according to the precision needed for the comparison.
How to Calculate a Discount Percentage on a Calculator
Enter the original price minus the sale price, divide by the original price, and multiply by 100.
For an original price of $150 and a sale price of $105, enter (150 − 105) ÷ 150 × 100. The result is 30%.
The Percentage Calculator can also calculate the percentage relationship using the saving and original price.
How to Find the Sale Price from a Known Discount
When the discount percentage is already known, calculate the discount amount by multiplying the original price by the discount decimal.
For a 20% discount on a $90 product, calculate 0.20 × $90 to get a saving of $18.
Subtract $18 from $90. The sale price is $72.
How to Find the Original Price
Sometimes the sale price and discount percentage are known, but the original price is missing.
Convert the percentage remaining into decimal form. After a 20% discount, 80% of the original price remains, which is 0.80.
Divide the sale price by 0.80. If the sale price is $72, the original price was $90.
Example: 15% Discount
Suppose an item originally costs $240 and is discounted by 15%.
Calculate 0.15 × $240 to find the saving of $36.
Subtract $36 from $240. The discounted price is $204.
Example: Comparing Two Discounts
Suppose one store reduces a $100 product to $75, while another reduces a $140 product to $98.
The first discount is $25 ÷ $100 × 100, which is 25%.
The second discount is $42 ÷ $140 × 100, which is 30%. The second offer has the larger percentage discount, although its final price remains higher.
Successive Discounts
Two successive discounts should not normally be added together because the second discount applies to the already reduced price.
A 20% discount followed by a 10% discount does not equal a 30% total discount.
Starting from $100, the first discount reduces the price to $80. The second removes $8, leaving $72. The overall discount is 28%.
Discount Percentage vs Percentage Off
Discount percentage and percentage off usually describe the same reduction from the original price.
A label stating 25% off means that 25% of the original price is removed and 75% remains to be paid.
The amount saved and the final sale price are separate values, so confirm which result you need.
Discounts Before and After Tax
The order in which discounts and taxes are applied may affect the displayed amounts and can depend on local rules or store policies.
A discount may be applied to the pre-tax price, after which tax is calculated on the reduced amount.
For an exact purchase total, check the retailer's calculation and applicable tax treatment.
Common Discount Calculation Mistakes
The most common mistake is dividing the saving by the sale price instead of the original price.
Another is treating the amount saved as the final price or subtracting the percentage number directly from the price.
Adding successive percentage discounts together can also overstate the actual saving.
Conclusion
To calculate a discount percentage, subtract the sale price from the original price, divide by the original price, and multiply by 100.
Use the original price as the reference and distinguish between the amount saved, the discount percentage, and the final sale price.
Use the Percentage Calculator on the homepage to check your discount calculation.
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FAQs
What is the formula for discount percentage?
Subtract the sale price from the original price, divide the saving by the original price, and multiply by 100.
What is the discount from $80 to $60?
The saving is $20. Divide $20 by $80 and multiply by 100. The discount is 25%.
How do I calculate the sale price after a discount?
Multiply the original price by one minus the discount percentage expressed as a decimal.
Are two 20% discounts equal to 40% off?
No. The second discount applies to the already reduced price, so two successive 20% discounts equal a 36% overall discount.
Should I divide by the original price or sale price?
Divide by the original price because it is the reference amount before the discount.