Discount Calculator Standard Discount Stacked Discounts BOGO & Bundles Clearance ...
Discount Calculator
Standard Discount
Original Price ($)
Discount Percentage (%)
Sales Tax Rate (%)
Stacked Discounts
Original Price ($)
First Discount (%)
Second Discount (%)
Coupon/Code Discount (%)
Sales Tax Rate (%)
BOGO & Bundles
Item Price ($)
Quantity
BOGO Type
Bundle Discount (%)
Sales Tax Rate (%)
Clearance Pricing
Original Price ($)
First Markdown (%)
Second Markdown (%)
Final Clearance (%)
Sales Tax Rate (%)
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Understanding Discount Calculations
Discounts are a fundamental part of retail pricing strategies, but calculating the actual savings can be complex—especially when multiple discounts are combined or special promotions like BOGO (Buy One Get One) are involved.
Standard discounts are straightforward percentage reductions from the original price. Stacked discounts involve applying multiple discounts sequentially, where each discount is calculated on the already-reduced price, not the original amount.
BOGO and bundle deals offer savings through quantity-based promotions rather than percentage discounts. Clearance pricing often involves multiple markdowns over time, with each subsequent discount applied to the already-reduced price.
Understanding how these different discount types work helps consumers make informed purchasing decisions and maximize their savings, while also helping businesses set effective promotional pricing strategies.
Frequently Asked Questions
A: Stacked discounts are applied sequentially, not added together. For example, a 30% discount followed by a 20% discount equals a 44% total discount (not 50%), because the second discount is calculated on the already-reduced price: $100 → $70 → $56.
A: BOGO Free means you pay for one item and get the second free (50% off total). BOGO 50% Off means you pay full price for the first item and half price for the second (25% off total). BOGO Free provides better savings.
A: Clearance markdowns are typically applied sequentially to the current selling price, not the original price. Each markdown reduces the price further, with the final price often representing significant savings from the original retail price.
A: Sales tax is typically calculated on the final discounted price, not the original price. This means you save on both the item cost and the tax amount when discounts are applied before tax calculation.
A: Not always. Retailers often have policies about which discounts can be combined. Some exclude sale items from additional coupon discounts, while others may not allow manufacturer and store coupons to be used together. Always check store policies before assuming discounts can be stacked.
A: The effective discount rate is calculated as: (Original Price - Final Price) / Original Price × 100%. This gives you the true percentage savings, which is especially important when comparing different discount structures or promotional offers.
A: Bundle discounts can be better if you need all the items in the bundle. However, if you don't need everything, buying individual items with standard discounts might save more money. Always calculate the per-unit cost to compare effectively.