How to use the discount & sales tax
Enter amount, discount (%), and sales tax (%). Choose the currency for your inputs and read the result as you change the values.
How it works and formula
Discounted price = amount × (1 − discount rate). Checkout = discounted price × (1 + tax rate).
Worked example
| Amount | 100 |
|---|---|
| Discount (%) | 20 |
| Sales tax (%) | 8 |
Result
Savings $20.00 · Checkout $86.40
Try a second calculation
Start with the USD worked example above and change only discount (%) to 30. Select Calculate. Your result should read:
Savings $30.00 · Checkout $75.60
Then enter 10 in the same field. Compare the result with the first scenario row. Holding every other input steady lets you see exactly how this one change affects the calculation.
Choosing your inputs
Read the product’s original price and the markdown on the same ticket. Enter a percentage discount and the tax rate that applies to your example. The tool reduces the price first, then multiplies the remaining amount by the tax factor.
How to interpret the result
Compare the savings figure with the difference between the original and discounted item prices. The checkout figure answers a different question because it includes tax. If shipping or a fixed fee is added at checkout, account for it separately.
Frequently asked questions
Where can I see what I saved?
Savings is the markdown on the item before tax. Checkout includes the tax rate you entered.