Calculate the real price after stacked discounts

Use this discount calculator to find the final price after one or two percentage discounts. It also shows the effective percent off, savings per unit and the effect of the promotion on margin and profit. If you have a target selling price, you can work backwards to the single discount needed to reach it.

What the calculator shows

• Final price per unit after both discounts
• Savings per unit and effective discount percentage
• Profit per discounted unit
• Discounted margin and the change from list-price margin
• Profit at the current quantity and the change from selling at list price
• Whole units required to preserve the original total profit, when that target is viable
• Extra units and percentage volume uplift required
• The single percentage discount needed to reach a target final price

How to use the discount calculator

1. Enter the list price and cost per unit.
2. Add the current sales quantity.
3. Enter the first and second percentage discounts. Use 0% when there is no second discount.
4. Add a target final price if you want to reverse-calculate a single discount.
5. Review the customer price first, then check the margin, profit and required-volume results.

The list price must be positive, cost cannot be negative, and quantity must be a positive whole number. Each discount can range from 0% to 99.9%. The target price must be between zero and the list price.

How stacked discounts work

Sequential discounts are multiplied, not added. The second discount applies to the price left after the first discount:

Final price = list price × (1 − first discount ÷ 100) × (1 − second discount ÷ 100)

The effective discount is then calculated from the total savings:

Effective discount = (list price − final price) ÷ list price × 100

For example, 10% off followed by another 5% off does not equal 15% off. A $100 list price first falls to $90, then to $85.50. The total saving is $14.50, so the effective discount is 14.5%.

Measure margin and profit impact

The calculator compares discounted performance with selling the same quantity at list price:

• Profit per discounted unit = final price − unit cost
• Discounted margin = profit per discounted unit ÷ final price × 100
• Discounted total profit = profit per discounted unit × quantity
• Profit change = discounted total profit − list-price total profit

Margin change is shown in percentage points. A negative value means the discount reduces margin relative to the list-price scenario.

Estimate the volume needed to preserve profit

When both list-price unit profit and discounted unit profit are positive, the calculator estimates the whole-unit volume needed to preserve the original total profit:

Required volume = round up(list-price total profit ÷ discounted unit profit)

This is a planning target, not a demand forecast. It assumes the same unit cost and no change in fixed costs, capacity, demand or commercial terms. If either unit-profit figure is zero or negative, the calculator does not show a profit-preserving volume target.

Reverse-calculate a target discount

Enter a target final price to calculate the single percentage discount that would move directly from the list price to that target:

Reverse discount = (1 − target price ÷ list price) × 100

This reverse calculation is separate from the two sequential discount inputs. It is useful when you know the customer price you want to advertise but need the corresponding percent-off figure.

Worked discount example

Suppose the list price is $100, unit cost is $60 and current quantity is 100 units. A 10% discount followed by 5% produces these results:

With a target final price of $80, the reverse calculation returns a 20% single discount.

Margin, markup and profit are different

Profit is the selling price minus cost. Margin divides profit by the selling price, while markup divides profit by cost. This calculator reports margin and profit, not markup. If you need to compare both measures or calculate a target selling price, use the Margin Calculator.

For general percentage-of, percentage-change and reverse-percentage questions outside a pricing promotion, use the Percentage Calculator.

Tax and planning assumptions

Use prices excluding recoverable VAT or GST. Include non-recoverable tax in cost when appropriate. Tax treatment varies by business and jurisdiction, so confirm the correct basis for your inputs.

The results are planning estimates. They do not predict demand or account for changes in unit cost, fixed costs, payment fees, returns, commissions, capacity or customer response unless those effects are already reflected in the values you enter. Verify tax treatment, demand, costs, capacity and commercial terms before changing prices.

Frequently asked questions

How do I calculate 20% off a price?

Multiply the list price by 0.80. In the calculator, enter 20% as the first discount and 0% as the second discount. A $100 list price becomes $80.

Do two 10% discounts equal 20% off?

No. The first 10% reduces the price to 90% of the original amount, and the second 10% applies to that reduced price. The final price is 81% of the list price, which is an effective discount of 19%.

Why can a discount require a large increase in sales volume?

A discount reduces profit per unit whenever unit cost stays the same. Because every discounted sale contributes less profit, more units may be needed to match the total profit earned at list price.

When is the required-volume result unavailable?

The calculator shows a profit-preserving volume target only when profit per unit is positive at both the list price and the discounted price. If either scenario has zero or negative unit profit, increasing volume cannot preserve the original positive profit under the calculator's assumptions.

Is margin the same as markup?

No. Margin divides profit by selling price, while markup divides profit by cost. The percentages differ even when they describe the same sale.