Updated · Built and checked by the PlinzoTools team, formulas tested against published sources
Calculate a final price after applying both a discount and tax to an original price.
This tool applies a discount percentage to an original price first, then applies a tax percentage to that discounted price -- the order most retail pricing actually uses (tax charged on the post-discount amount, not the original price).
Enter the original price, discount percentage, and tax percentage. The discounted price, tax amount, and final price all appear instantly.
The tool takes an original price, a discount percentage, and a tax percentage. It reduces the price by the discount first, then computes tax on that reduced price, and the final price is the discounted price plus the tax. The display shows the final price prominently, with the discounted amount and the tax amount underneath, both to two decimal places. Negative inputs are treated as zero.
Discounted price = original x (1 - discount%). Tax = discounted price x tax%. Final = discounted price + tax.
Use hypothetical numbers: an item lists at 100 dollars, has a 20 percent discount, and the tax rate is 8 percent. The discounted price is 80. Tax on 80 is 6.40, so the final price is 86.40. Compare that with applying tax to the original price first: tax on 100 is 8, giving 108, then a 20 percent discount would produce 86.40 as well. With plain percentage multiplication, the order does not change the final total, because multiplying by (1 - 0.20) and by (1 + 0.08) commutes. What does change is the tax amount itself: 6.40 versus 8.00. That matters when you need the tax figure for a receipt, a return, or bookkeeping, and it is why the order the tool uses, tax on the discounted price, is the useful one to see.
A discount above 100 percent is not blocked and will produce a negative discounted price, which is not meaningful in practice. Keep the discount between 0 and 100. A tax of 0 simply returns the discounted price, useful for tax-exempt purchases or when comparing offers before tax. If you leave a field empty, it is read as zero.
Shoppers can use the calculator to see what a sale price really costs at the register once tax is added, and to compare two offers, such as a bigger discount on a pricier item against a smaller discount on a cheaper one. Small sellers can use it to prepare a quote showing the discount and the tax separately, which helps customers see how the total was built. Because tax rates and rules depend on location and product type, confirm the rate to use with your local tax authority or a qualified accountant instead of relying on a generic figure.
This is the most common approach at retail (tax on the discounted price), but tax rules can vary by jurisdiction and situation -- verify against your local tax rules for anything requiring precision.
With simple percentages, the final total is the same either way. The difference is in the tax amount, which is lower when tax is charged on the discounted price, as this tool does.
Do not add the percentages. Apply them one after the other, or multiply the remaining factors. For example, 20 percent then 10 percent leaves 72 percent of the price.
Only percentages are supported. Divide the dollar amount by the original price and multiply by 100 to get the equivalent percentage.
No. You enter the rate yourself. Look up the rate that applies to your location and product with your local tax authority.
Reference: Google Search Central