Personal Finance

How Do Percentage Discounts Work?

A percentage discount reduces a price by a stated percentage of the original price. Sale price = original price × (1 − discount rate). A 25% discount on 80 saves 20, so the sale price is 60.

Stacked Discounts

Two discounts applied one after another are multiplied, not added: 20% off and then 10% off equals 28% off in total, not 30%, because the second discount applies to the already reduced price.

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.