Business Pricing

Discount stack calculator

Original price
First discount
%
Second discount
%
Final price 112
30% then 20% — not 30+20%
Effective discount 44 %
Total saved 88
After the first discount only 140
Saved on the first 60
(1−a) × (1−b) · never a + b
Advertisement
320 × 100

Stacked discounts multiply. Thirty per cent off then twenty per cent off leaves 56% of the original price — an effective 44% discount, not 50%. The shortfall grows as the individual percentages grow.

How to combine discounts

1 Enter the original price.
2 Enter each discount as it is applied, in order.
3 Read the final price and the effective single-percentage equivalent.
4 Compare against the naive sum to see the gap.

The order does not matter — 30% then 20% gives the same answer as 20% then 30% — but the intuition that they add certainly does. The mathematical reason is that the second discount applies to the already-reduced price, so it takes a percentage of a smaller number. Two 50% discounts leave a quarter of the price, not nothing. This matters most on the retailer side, where a stack of promotions each individually approved can quietly take a product below cost.

Questions

No. Applied in sequence they give 44% off, because the second applies to the already-reduced price.

Advertisement
300 × 250
Was this tool any good?
INTERNAL SIGNAL ONLY · WE USE IT TO FIND TOOLS WORTH REBUILDING