Discount Calculator

How to Calculate a Discount Price

A discount is a reduction applied to the original price of a product or service. The Toolsiro Discount Calculator handles three types of discount calculations: a single discount applied to an original price, multiple sequential discounts (common in B2B trade pricing), and the reverse calculation — finding the original price when you know the sale price and discount percentage. It supports seven currencies and includes quick-select buttons for common discount percentages from 5% to 70%.

Single Discount Formula

The two core formulas for calculating a discount are:

• Discount amount = Original price × (Discount% ÷ 100)
• Sale price = Original price × (1 − Discount% ÷ 100)

Examples:

• SAR 500 item with 20% discount: Discount = SAR 100 → Sale price = SAR 400
• AED 1,200 jacket at 35% off: Discount = AED 420 → Sale price = AED 780
• EGP 850 phone at 15% off: Discount = EGP 127.50 → Sale price = EGP 722.50

Multiple Sequential Discounts — How They Work

When multiple discounts are applied in sequence, they do not simply add up. Each discount is applied to the already-discounted price from the previous step. This is common in wholesale pricing where a product has a trade discount followed by a volume discount.

Example: A SAR 1,000 item with 20% trade discount then 10% volume discount:

• After 20% discount: SAR 1,000 × 0.80 = SAR 800
• After 10% discount on SAR 800: SAR 800 × 0.90 = SAR 720
• Total saved: SAR 280 — effective discount rate: 28% (not 30%)

The effective combined discount for two sequential discounts of x% and y% is: effective% = 100 − (100−x) × (100−y) ÷ 100. For 20% and 10%: 100 − (80 × 90 ÷ 100) = 100 − 72 = 28%.

Reverse Discount — Finding the Original Price

If you know the sale price and the discount percentage but need the original price:

Original price = Sale price ÷ (1 − Discount% ÷ 100)

• Sale price USD 48 after 20% discount → original: 48 ÷ 0.80 = USD 60
• Sale price SAR 255 after 15% discount → original: 255 ÷ 0.85 = SAR 300

This is particularly useful in retail and accounting when you receive an invoice showing only the discounted price and need to verify the pre-discount amount or calculate VAT on the original value.

Discount Strategies in Arab Retail Markets

Several discount patterns are particularly common in Gulf and wider Arab retail markets:

• Ramadan and Eid sales: Discounts of 30–70% are typical during major religious holidays across GCC countries and Egypt. Electronics, fashion, and home goods see the deepest cuts.
• White Friday (الجمعة البيضاء): The Arab equivalent of Black Friday, popularised by Souq.com (now Amazon.ae) and now observed widely across the region with 40–80% discounts.
• National Day sales: Saudi National Day (23 September) and UAE National Day (2 December) both feature large retail discount campaigns.
• Clearance pricing: End-of-season clearance in Arab fashion retail commonly offers 50–80% off original prices.

Discount vs Markdown vs Rebate

• Discount: Reduction from the listed price, applied at the point of sale. Immediate.
• Markdown: A permanent reduction in the list price itself, common for clearance goods.
• Rebate: A refund given after purchase, typically requiring the buyer to submit a claim. Common for electronics and appliances.
• Coupon: A specific-value or percentage reduction triggered by a code or physical coupon.

VAT and Discounts

In countries that charge VAT (Saudi Arabia 15%, UAE 5%, Egypt 14%), it is important to understand whether a discount is applied before or after VAT:

• Discount before VAT: The tax base is reduced. A SAR 100 item with 20% discount (= SAR 80) then 15% VAT = SAR 92 total.
• Discount after VAT: Less common in formal retail. The full price plus VAT is calculated first, then the discount is applied.

Related Tools

Use the Percentage Calculator for general percentage maths, or the Tip Calculator for restaurant service charges.