Calculate discounts, final sale prices, and savings. Free discount calculator for retailers, e-commerce, and small businesses.
Calculate discounts, final sale prices, and savings. Free discount calculator for retailers, e-commerce, and small businesses.
Generated: 1/13/2026, 7:14:56 AM | AskSMB.io
Price before discount
Percentage discount
Enter original price and discount to see results
Original price must be greater than zero
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 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.
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.
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.
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.
Where:
Discount amount = $100 × 20% = $20 | Final price = $100 - $20 = $80