A discount refers to any price reduction applied to a product or service, helping you save money on purchases. While discounts come in many forms, the two most popular are percentage-based discounts (e.g., “30% off”) and fixed-amount discounts (e.g., “$50 off”). Below, we break down how these work and how our discount calculator effortlessly computes your savings.

1. Percentage Discounts: How They Work

A percentage discount slashes the original price by a specific rate. For example, a 10% discount on a $45 item can be calculated in two ways:

• Method 1: Subtract 10% of $45 from the original price.
  10% of $45 = 0.10 × $45 = $4.50
Final Price = $45 – $4.50 = $40.50
• Method 2: Calculate the remaining percentage (90%) directly.
  90% of $45 = 0.90 × $45 = $40.50
  Total Savings: $4.50 (10% off).

2. Fixed-Amount Discounts: Straightforward Savings

A fixed-amount discount deducts a set value from the original price. For instance, with a $20 coupon on a $95 service:

• Final Price:
  $95 – $20 = $75
  Total Savings: $20 instantly.

3. Beyond Basic Discounts: Tackling Complex Promotions

While percentage and fixed discounts are simple, promotions like stackable discounts (e.g., “20% off, then an extra 15% off the reduced price”) require multiple steps. Our discount calculator tool handles these effortlessly, ensuring you never overpay—even with layered deals.