📖 How to Calculate Discounts
Finding Sale Price
- Convert discount percentage to decimal (25% = 0.25)
- Multiply original price by discount decimal to get savings
- Subtract savings from original price
Example: $80 jacket at 25% off → $80 × 0.25 = $20 savings → $80 - $20 = $60 sale price
Finding Discount Percentage
- Subtract sale price from original price (= savings)
- Divide savings by original price
- Multiply by 100 for percentage
Example: Was $80, now $60 → $20 savings → $20 ÷ $80 = 0.25 = 25% off
📐 The Formulas
Quick Mental Math
- 10% off: Move decimal left one place ($80 → $8 off)
- 20% off: Double the 10% amount ($80 → $16 off)
- 25% off: Divide by 4 ($80 → $20 off)
- 50% off: Divide by 2 ($80 → $40 off)
❓ Frequently Asked Questions
Discounts apply sequentially, not additively. 20% off + 10% off ≠ 30% off. First discount reduces price, then second discount applies to the reduced amount. $100 at 20% off = $80, then 10% off = $72 (28% total, not 30%).
BOGO 50% off = 25% off each item when you buy two. Not as good as it sounds! BOGO free (buy one get one free) = 50% off each item.
Track prices over time (use price trackers), compare across stores, check if the "original price" is inflated, and ask yourself if you'd buy it at full price. A discount on something you don't need isn't saving money!
Discounts apply before tax. You pay tax on the discounted price. So 25% off a $100 item = $75 before tax. If tax is 8%, total = $75 + $6 = $81.