How it’s calculated
A percentage discount is taken off the original price. A second discount applies to the already-reduced price, so two discounts multiply rather than add.
Example (OpenStax Contemporary Mathematics, Example 6.10): 25% off 75.80 is a discount of 18.95, giving a sale price of 56.85. Adding a further 10% off brings it to 51.17, a combined discount of 1 − 0.75 × 0.90 = 32.5% (not 35%).
Frequently asked questions
Is 20% off plus 10% off the same as 30% off?
No. The second discount applies to the reduced price: 1 − 0.80 × 0.90 = 0.28, so it is 28% off in total.
How do I find the original price from a sale price?
Divide the sale price by (1 − discount). A 450 sale price after 10% off was originally 450 ÷ 0.90 = 500.
How do I calculate the discount percentage?
Divide the amount saved by the original price. 1,200 reduced to 900 saves 300, and 300 ÷ 1,200 = 25%.
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Sources
- Contemporary Mathematics, 6.2: Discounts, Markups, and Sales Tax — OpenStax
- Prealgebra 2e, 6.3: Solve Sales Tax, Commission, and Discount Applications — OpenStax
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