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Formula

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Results

Final Price
$86.4
after discount and tax
Discount Amount $20
Price After Discount $80
Tax Amount $6.4
You Save $20

What This Calculator Does

The Discount and Sales Tax Calculator tells you exactly how much you'll pay at the register when an item is on sale and sales tax is added. It first removes the discount from the original price, then applies the tax rate to the reduced amount — the same order most stores use. You instantly see the final price, how much you saved, and how the discount and tax break down.

How to Use It

Enter the original price of the item, the discount as a percentage (use 0 if there is no sale), and your local sales tax as a percentage. The calculator returns the final out-the-door price plus a breakdown of the discount amount, the discounted subtotal, and the tax charged. Currency and tax rates vary by location, so use the rate that applies where you shop.

The Formula Explained

Two simple steps drive the math. First, the discounted price equals the original price times one minus the discount fraction: \(\text{Discounted} = \text{Price} \times \left(1 - \frac{d}{100}\right)\). Then tax is applied on that smaller number: \(\text{Final} = \text{Discounted} \times \left(1 + \frac{t}{100}\right)\). Because tax is calculated after the discount, you pay tax only on what you're actually charged — not on the original sticker price.

$$\text{Final Price} = \text{Price}\left(1 - \frac{\text{Discount \%}}{100}\right)\left(1 + \frac{\text{Tax \%}}{100}\right)$$
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Flowchart showing original price reduced by discount then increased by tax to reach final price
How the price flows through the discount step and then the tax step to reach the final amount.

Worked Example

Suppose a jacket costs $100, is 20% off, and your sales tax is 8%. The discount is \(\$100 \times 0.20 = \$20\), leaving a discounted price of $80. Tax on $80 is \(\$80 \times 0.08 = \$6.40\). The final price is

$$\$80 + \$6.40 = \$86.40$$

and you saved $20 off the original.

Stacked bar diagram breaking the price into discounted price, savings, and tax
A visual breakdown of original price, the amount saved by the discount, and the tax added.

FAQ

Is tax applied before or after the discount? This calculator applies tax after the discount, which is standard practice in most regions because you're taxed on the amount you actually pay.

Can I use it with no discount? Yes — enter 0 for the discount to calculate price plus tax only.

Does it work for any currency? The math is currency-agnostic; the $ symbol is just for display. Use your own percentages and the result applies to your currency.

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