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With original price 80 usd, discount 25 percent, second discount at the till 20 percent, sales tax 0 percent, discount comes to $48.00 — sale price. It is reached in 8 steps, the last of which is 60 - 12, and each one is printed on the page with its numbers filled in. The formula is the one published by FTC, not an approximation fitted to it.

The price after a discount, the amount saved, and what a second discount stacked on the first actually comes to — which is never the two rates added together.

Formula and sources checked · How we check

Original price 80, Discount 25, Second discount at the till 20

$48.00

Sale price for the example below. Editing a field recomputes the calculator below; this figure holds the answer the page was loaded with.

It is written into the HTML rather than drawn by a script, so a search engine reading this page without running JavaScript still finds an answer.

Sale price
$48.00
First discount saves
80 * 25 / 100$20
Price after the first discount
80 - 20$60
Second discount saves
60 * 20 / 100$12
Price after both
60 - 12$48
Total saved
80 - 48$32
Effective discount
32 / 80 * 10040
Sales tax on the sale price
48 * 0 / 100$0
Total at the till
48 + 0$48

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Worked example

An $80 jacket at 25% off is $60. A further 20% at the till takes $12 off that, not $16, so it comes to $48 — a total saving of $32, which is 40% of the original price and not the 45% the two rates suggest when added.

How to work it out yourself

  1. 1.Apply discounts one after another, never added together. Two rates stack multiplicatively: 25% then 20% leaves 0.75 × 0.80 = 60% of the price, which is 40% off rather than 45%.
  2. 2.Check what the second discount applies to. "Extra 20% off sale prices" means off the reduced price; "20% off everything" at the same time as a sale sometimes means off the original, and the difference is real money.
  3. 3.Add sales tax last. Tax is charged on what you actually pay, so a discount reduces the tax with it — which is why a coupon is worth slightly more than its face value.

Effective discount when two stack

$0.0$30.0$60.00 Second discount at the till: $60.0 USD10 Second discount at the till: $54.0 USD15 Second discount at the till: $51.0 USD20 Second discount at the till: $48.0 USD30 Second discount at the till: $42.0 USD50 Second discount at the till: $30.0 USD050Second discount at the till (percent)
Effective discount when two stack
Second discount at the till (percent)Sale pricePrice after bothEffective discount
0$60.00$6025
10$54.00$5432.5
15$51.00$5136.25
20$48.00$4840
30$42.00$4247.5
50$30.00$3062.5

The formula

  1. First discount saves80 * 25 / 100
  2. Price after the first discount80 - 20
  3. Second discount saves60 * 20 / 100
  4. Price after both60 - 12
  5. Total saved80 - 48
  6. Effective discount32 / 80 * 100
  7. Sales tax on the sale price48 * 0 / 100
  8. Total at the till48 + 0

Source: FTC — guides against deceptive pricing, 16 CFR 233, NIST Handbook 130 — uniform pricing and price verification regulation

Questions people actually ask

Is 25% off then 20% off the same as 45% off?
No — it is 40% off. The second discount applies to the reduced price, so you keep 75% and then 80% of that: 0.75 × 0.80 = 0.60. Stacked discounts are always worth less than the sum of their rates, and the gap grows as the rates do.
How do I calculate a percentage off?
Multiply the price by the discount and subtract, or multiply by what is left directly. 25% off $80 is $80 × 0.75 = $60. The second form is fewer steps and is the one to use when discounts stack.
What discount gets me to a target price?
One minus the target divided by the original. To get an $80 jacket to $50 you need 1 − 50/80 = 37.5% off. Enter that here and the arithmetic confirms it.

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