Is tax applied before or after discount?
This calculator applies tax after discount; if tax is applied before discount in your case, adjust your inputs accordingly.
Finance
Discount Calculator
Enter the original price and discount percentage to instantly see the reduced price, savings amount, and total after tax.
Live calculator output
Add a list price and discount rate to preview the new total.
How it works
The calculator applies the discount first, then optionally adds sales tax. The formula is: Final Price = (Original Price × (1 − Discount ÷ 100)) × (1 + Tax ÷ 100).
This mirrors how most retail stores compute sale prices: the discount is applied to the original price, and tax is calculated on the reduced amount.
Practical example
An item costs 199 and is 20% off. The discount amount is 199 × 0.20 = 39.80, bringing the price to 199 − 39.80 = 159.20.
If sales tax is 8%, the tax adds 159.20 × 0.08 = 12.74, making the final price 171.94. You save 27.06 compared to buying at full price with tax.
Frequently asked questions
Can discount be greater than 100%?
No. Discount percentage should stay between 0 and 100 to represent a valid markdown.
Can I use this for tax-free pricing?
Yes. Set tax to 0% to calculate a discount without tax impact.
How do I calculate a double discount?
Apply the first discount to the original price, then use the resulting price as the new base and apply the second discount. Note that two 20% discounts do not equal 40% off.
Does this work for coupons and promo codes?
Yes. Enter the coupon discount percentage and the calculator shows the same result as your checkout would.
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