Discount Calculator
Calculate discounts, final sale prices, and savings. Free discount calculator for retailers, e-commerce, and small businesses.
Discount Calculator
Calculate discounts, final sale prices, and savings. Free discount calculator for retailers, e-commerce, and small businesses.
Generated: 2/22/2026, 12:32:41 AM | AskSMB.io
Calculate Discount
Input Values
Price before discount
Percentage discount
Enter original price and discount to see results
Original price must be greater than zero
How the Discount Calculator Works
What is a discount?
A discount is a reduction from the original price of a product or service. Discounts can be expressed as a percentage (e.g., 20% off) or a fixed dollar amount (e.g., $10 off). They're used to attract customers, clear inventory, reward loyalty, or compete with rivals. The final sale price is what customers pay after the discount is applied.
Percentage vs fixed discounts
Percentage discounts scale with price - a 20% discount on a $50 item is $10 off, but on a $200 item it's $40 off. This makes them ideal for varied pricing or higher-value items. Fixed discounts ($20 off) work better for lower-priced items where percentages might seem small, and they're easier for customers to understand. Choose based on your price points and marketing goals.
How discounts affect profit margins
Discounts directly reduce your profit margin. If you have a 40% margin and offer 20% off, your margin drops to roughly 20%. Deep discounts can eliminate profit entirely or even cause losses if they exceed your margin. Always calculate the impact: ensure the discounted price still covers your costs and generates acceptable profit. Volume increases must compensate for margin reduction.
When to use discounts strategically
Use discounts strategically, not habitually. Good times: clearing seasonal inventory, acquiring new customers (with lifetime value in mind), recovering abandoned carts, rewarding VIP customers, or matching competitor promotions temporarily. Avoid constant discounting - it trains customers to wait for sales, devalues your brand, and attracts price-shoppers who won't return at full price.
Common discount mistakes to avoid
Top mistakes: (1) Discounting too deeply without calculating profit impact, (2) Running constant sales that condition customers to never pay full price, (3) Discounting popular items that sell well at full price, (4) Not tracking whether discounts actually increase profitable sales, (5) Offering the same discount to everyone instead of segmenting, (6) Forgetting to account for costs like payment processing and shipping when calculating margins.
Formula
Where:
- Discount Amount (% type)=Original Price × (Discount % ÷ 100)
- Discount Amount (fixed)=Fixed discount value
- Final Price=Original Price - Discount Amount
- Savings %=(Discount Amount ÷ Original Price) × 100
Example Scenario
Discount amount = $100 × 20% = $20 | Final price = $100 - $20 = $80
Tips & Best Practices
- •Keep discounts under 25% to maintain healthy profit margins
- •Use percentage discounts for high-value items, fixed for low-value
- •Test discount impact on profit before launching promotions
- •Avoid training customers to expect constant discounts
- •Consider bundling or value-adds instead of price cuts
- •Track which discount levels drive the most profitable sales
Frequently Asked Questions
Related Tools
💡 Quick Tips
- •All calculations happen in your browser - your data is private
- •Results update in real-time as you type
- •Export to PDF or share via link
- •No sign-up required