Black Friday, Boxing Day and clearance racks all speak in percentages. Here is how to know exactly what you will pay. For instant answers, use the discount calculator.
Percent off
Sale price = price x (1 – discount). 30% off $80 = $80 x 0.70 = $56. Your savings are $80 – $56 = $24.
Mental shortcut: 10% of a price is the price with the decimal moved one place left. 10% of $80 is $8, so 30% is $24.
Stacked discounts
“Extra 20% off sale price” is applied after the first discount. 40% off then 20% off: $100 x 0.60 x 0.80 = $48. That is 52% off in total, not 60%.
Finding the original price
Original price = sale price / (1 – discount). If a jacket is $90 after 25% off, it was $90 / 0.75 = $120.
Percent saved
Percent saved = (original – sale) / original x 100. From $250 to $199: 51 / 250 = 20.4% off.
Add the sales tax last
In Canada, tax is calculated on the discounted price. Rates by province:
- 5% GST: Alberta, Yukon, Northwest Territories, Nunavut
- 11%: Saskatchewan (GST + PST)
- 12%: British Columbia and Manitoba (GST + PST)
- 13% HST: Ontario
- 14% HST: Nova Scotia
- 14.975%: Quebec (GST + QST)
- 15% HST: New Brunswick, Newfoundland and Labrador, Prince Edward Island
A $56 sale item in Ontario costs $56 x 1.13 = $63.28 at the till.
Is it really a deal?
Compare the price per unit, check the price history, and remember that a big percentage off an inflated “regular price” may not be a bargain.