Discount Calculator with Tax

When you shop online or in a store, discounts and taxes often apply together. But calculating the final price after discount and tax can be confusing. That’s where our Discount Calculator with Tax comes in handy.

In this guide, we’ll walk you through how the calculations work using simple formulas, step-by-step examples, and clear logic so you know exactly how your savings and taxes are calculated.

1. Formula for Discounted Price

To calculate the discounted price, use this formula:

$\text{Discounted Price}=\text{Original Price}\times \left(1-\frac{\text{Discount Percentage}}{100}\right)$

2. Formula for Tax Amount

Tax is calculated on the discounted price, not the original price. Use this formula:

$\text{Tax Amount}=\text{Discounted Price}\times \left(\frac{\text{Tax Percentage}}{100}\right)$

3. Formula for Final Price

The final price is simply the discounted price plus the tax amount:

$\text{Final Price}=\text{Discounted Price}+\text{Tax Amount}$

Example Calculation

Let’s say:

• Original Price = $200
• Discount Percentage = 15%
• Tax Percentage = 10%

Step 1: Calculate Discounted Price

$\text{Discounted Price}=200\times \left(1-\frac{15}{100}\right)=200\times 0.85=170$

Step 2: Calculate Tax Amount

$\text{Tax Amount}=170\times \left(\frac{10}{100}\right)=170\times 0.10=17$

Step 3: Calculate Final Price

$\text{Final Price}=170+17=187$​​​​​​​

So, after a 15% discount and 10% tax, the final price is $187.

Summary Table

Use Cases

• 🛍️ Shoppers: Understand your real cost after discount and tax.
• 🧾 Retailers: Show customers transparent pricing.
• 📊 Business Owners: Use in invoices or eCommerce pricing.