Discount Mathematics & Stacked Coupon Formulas
Discount calculations determine final consumer prices by extracting percentage or fixed dollar reductions:
1. Percentage Sale Price & Dollar Savings
Sale Price = Original Price ×
100 - Discount %100
2. Sequential Stacked Discount Effective Rate
Effective % = 1 - [ (1 - d₁/100) × (1 - d₂/100) × ... ]
3. Reverse Original Price Formula
Original Price =
Sale Price1 - (Discount % / 100)
Step-by-Step Discount Breakdown
Step 1: Determine Full Retail Base Price
Base Price: $100.00 × 1 unit(s) = $100.00 total retail.
Step 2: Apply Sequential Price Reductions
Total savings deducted = $20.00 (20.0% effective savings).
Step 3: Final Checkout Payable Amount
Payable Total=$80.00
Common Retail Discounts & Savings Table
| Promotion Type | Nominal Description | Effective % Off |
|---|---|---|
| Buy 1 Get 1 Free (BOGO) | Pay for 1, receive 2 units | 50.0% Off Each |
| Buy 1 Get 1 50% Off | Second item at half price | 25.0% Off Total |
| Stacked 20% + 10% Extra | Coupon applied over sale price | 28.0% Off (Not 30%) |
| Buy 2 Get 1 Free | Pay for 2, receive 3 units | 33.3% Off Each |