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Finance & Business · pattern A, Numeric fields

Discounted price, and the real saving.

Enter the original price and discount percentage for the sale price and the amount saved, with successive discounts handled properly.

Inputs

The formula used

sale price = original × (1 − discount)

Successive discounts multiply rather than add: 20% then a further 10% is 28% off, not 30%.

Sale price

60.00

Amount saved
20.00
After the further discount
54.00
Combined effective discount
32.500 %
Total saved
26.00
Price if the discounts were added
52.00
Discount needed to halve the price
50 %

Successive discounts multiply.

Taking 20% off and then a further 10% off leaves 0.8 × 0.9 = 0.72 of the original, a 28% discount rather than 30%. The order does not matter but the multiplication does, and retail promotions rely on the intuition that percentages add. The panel shows both figures so the gap is explicit.

Questions about discount

Does the order of two discounts matter?
No — multiplication is commutative, so 20% then 10% equals 10% then 20%. Which order a retailer applies changes nothing.
How do I find the original price from a sale price?
Divide by (1 − discount). A £60 item at 25% off was £80, because 60 ÷ 0.75 = 80.
Is a 50% discount the same as half price?
Yes. Two successive 25% discounts, by contrast, leave 56.25% of the original — not 50%.

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