Discount Calculator

Calculating a percentage discount is straightforward using this formula: FORMULA: Discount Amount = Original Price × (Discount Percentage ÷ 100) Final Price = Original Price - Discount Amount EXAMPLE CALCULATION: • Original Price: $80.00 • Discount: 25% off • Discount Amount: $80 × 0.25 = $20.00 • Final Price: $80 - $20 = $60.00 QUICK TIP: To find 25% of any price, divide by 4. To find 50%, divide by 2. To find 10%, move the decimal one place left.

Discount and markup work in opposite directions: DISCOUNT: • Reduces the selling price below the original • Applied by retailers to attract customers • Formula: Final Price = Original Price × (1 - Discount%) • Example: 20% off $100 = $80 MARKUP: • Increases the price above the cost • Used by businesses to cover costs and profit • Formula: Selling Price = Cost × (1 + Markup%) • Example: 50% markup on $100 cost = $150 KEY DIFFERENCE: Discount is calculated on the selling price, while markup is calculated on the cost price. A 50% markup doesn't equal a 50% profit margin - it actually equals a 33.3% margin.

BOGO promotions offer one free item when you purchase another: HOW IT WORKS: • Buy 1 Get 1 Free: Pay for 1, get 2 (50% total savings) • Buy 2 Get 1 Free: Pay for 2, get 3 (33.3% total savings) • Buy 1 Get 1 50% Off: Pay full + half price for second CALCULATION EXAMPLE (Buy 2 Get 1 Free): • Item Price: $30 each • Items Purchased: 3 • Without Promotion: 3 × $30 = $90 • With BOGO: 2 × $30 = $60 • Total Savings: $30 (33.3%) SHOPPING TIP: BOGO is only a good deal if you need multiple items. Buying something just for the "free" item isn't saving money - you're still spending.

Bulk discounts reward customers for purchasing larger quantities: HOW BULK DISCOUNTS WORK: • Set a minimum quantity threshold (e.g., 10+ items) • Apply percentage discount when threshold is met • Encourages larger orders for better unit prices TIERED BULK DISCOUNT EXAMPLE: • 1-9 items: Full price ($10 each) • 10-24 items: 10% off ($9 each) • 25-49 items: 15% off ($8.50 each) • 50+ items: 20% off ($8 each) WHEN TO USE BULK DISCOUNTS: ✓ Business purchases (office supplies, inventory) ✓ Group purchases (team uniforms, party supplies) ✓ Non-perishable items you'll definitely use ✗ Items with expiration dates you can't use in time ✗ Storage-limited situations

The better option depends on the original price: WHEN PERCENTAGE IS BETTER: • Higher-priced items • Example: 25% off $200 = $50 savings • $25 off $200 = only $25 savings WHEN FIXED AMOUNT IS BETTER: • Lower-priced items • Example: $10 off $30 = 33% savings • 25% off $30 = only $7.50 savings BREAK-EVEN CALCULATION: To find the break-even point, divide fixed amount by percentage. • $20 off vs. 25% off • Break-even: $20 ÷ 0.25 = $80 • Below $80: Take the $20 off • Above $80: Take the 25% off REAL-WORLD TIP: Many stores offer "$20 off $100 purchase" - that's effectively 20% off at the minimum, but only 10% off if you spend $200.

Stacking discounts depends on the retailer's policy: COMMON STACKABLE COMBINATIONS: • Store coupon + manufacturer coupon • Sale price + loyalty discount • Student/military discount + clearance • Credit card discount + store promotion TYPICALLY NON-STACKABLE: • Multiple percentage-off coupons • Competitor coupons at same store • Already-reduced clearance items • Special promotional prices HOW STACKING WORKS: Sequential application (not additive): • Original: $100 • First discount (20%): $100 × 0.80 = $80 • Second discount (10%): $80 × 0.90 = $72 • Total savings: 28% (not 30%) ALWAYS CHECK: Store policies, coupon fine print, and whether "cannot be combined with other offers" applies.

To find the original price when you know the sale price and discount: FORMULA: Original Price = Sale Price ÷ (1 - Discount Percentage as decimal) EXAMPLE: • Sale Price: $60 • Discount: 25% off • Original Price: $60 ÷ (1 - 0.25) = $60 ÷ 0.75 = $80 STEP-BY-STEP: 1. Convert percentage to decimal (25% = 0.25) 2. Subtract from 1 (1 - 0.25 = 0.75) 3. Divide sale price by result ($60 ÷ 0.75 = $80) VERIFICATION: $80 × 0.25 = $20 discount, $80 - $20 = $60 ✓ COMMON SCENARIOS: • 50% off: Multiply sale price by 2 • 25% off: Divide sale price by 0.75 • 33% off: Divide sale price by 0.67

These terms describe different aspects of the price reduction: DISCOUNT: • The reduction amount or percentage • What you're saving • Can be expressed as "$20 off" or "25% off" • Focuses on the savings SALE PRICE: • The final price after discount • What you actually pay • Expressed as a dollar amount • Focuses on the cost REGULAR VS. SALE PRICE EXAMPLE: • Regular Price: $100 • Discount: 30% off ($30) • Sale Price: $70 MARKDOWN VS. SALE: • Sale: Temporary price reduction • Markdown: Permanent price reduction • Clearance: Final markdown to clear inventory Watch for "compare at" prices - these may be inflated "regular" prices that were never actually charged.

Retailers use several psychological tactics with discounts: COMMON TACTICS: • Anchor Pricing: Show high "was" price to make "now" seem like a deal • Charm Pricing: $19.99 feels cheaper than $20 • Decoy Pricing: Third option makes middle option seem best value • Urgency: "Limited time" or "while supplies last" DISCOUNT ILLUSIONS: • "Up to 70% off" - Most items are 10-30% off • "Buy More Save More" - Encourages overspending • "Free with purchase" - Included in the purchase price • "Doorbuster" - Loss leader to get you in store HOW TO AVOID MANIPULATION: 1. Calculate actual dollar savings 2. Compare to prices at other retailers 3. Ask: "Would I buy this at full price?" 4. Ignore the "original" price - focus on value 5. Wait before purchasing impulse buys

Strategic timing can maximize your savings: MAJOR SALE EVENTS: • Black Friday (November): 40-70% off • Cyber Monday: Online deals • After Christmas (Dec 26-31): 50-75% off • Presidents Day: Mattresses, furniture • Memorial Day: Appliances, outdoor furniture • Labor Day: Back-to-school, summer clearance SEASONAL PATTERNS: • End of Season: Clothing clearance (Jan, July) • Model Year Changeover: Cars (Sept-Oct), Electronics (Jan) • Post-Holiday: Decorations (Jan, Nov) INSIDER TIPS: • Weekdays often have better deals than weekends • First thing in morning for limited stock items • End of month for sales quotas • Ask about price adjustments if item goes on sale after purchase • Sign up for email lists for exclusive early access

To find the best deal, calculate the final out-of-pocket cost: COMPARISON CHECKLIST: 1. Calculate actual sale price at each store 2. Add shipping costs (if online) 3. Consider sales tax differences 4. Factor in loyalty points/cashback value 5. Check return policies COMPARISON EXAMPLE: Store A: $100 item, 30% off = $70 + $5 shipping = $75 Store B: $95 item, 20% off = $76 + free shipping = $76 Store C: $90 item, 15% off + 5% cashback = $76.50 - $3.83 = $72.67 Winner: Store C (even with smaller discount) TOOLS TO HELP: • Browser extensions for price comparison • Cashback sites (Rakuten, TopCashback) • Price tracking tools (CamelCamelCamel, Honey) • Store price matching policies

A loss leader is a product sold below cost to attract customers: HOW LOSS LEADERS WORK: • Store intentionally loses money on specific items • Goal: Get customers in the door • Hope: Customers buy other full-price items • Common in grocery, electronics, retail COMMON LOSS LEADERS: • Milk and bread at grocery stores • Black Friday doorbusters • Video game consoles (profit from games) • Printers (profit from ink cartridges) • Streaming devices (profit from subscriptions) HOW TO BENEFIT: ✓ Buy only the loss leader if that's all you need ✓ Stock up on non-perishables at loss leader prices ✓ Combine with manufacturer coupons for extra savings ✗ Don't impulse buy other items just because you're there ✗ Don't assume all items on sale are good deals