Final Price Formula:
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Definition: This calculator determines the final price after applying two successive discounts to an original price.
Purpose: It helps shoppers and businesses calculate the true final price when multiple discounts are applied sequentially.
The calculator uses the formula:
Where:
Explanation: The discounts are applied sequentially, not added together. Each discount is applied to the already discounted price.
Details: Understanding sequential discounts helps consumers make informed purchasing decisions and businesses set proper pricing strategies.
Tips: Enter the original price in USD, first discount percentage, and second discount percentage. All values must be ≥ 0.
Q1: Why not just add the two discounts?
A: Adding discounts would give an incorrect result. Each discount is applied to the new reduced price, not the original.
Q2: What's the difference between this and a single combined discount?
A: A double discount typically results in a slightly better deal than a single discount of the same total percentage.
Q3: Can I use this for more than two discounts?
A: The same principle applies - just multiply by (1 - d₃), (1 - d₄), etc., for each additional discount.
Q4: How do discounts apply to tax?
A: This calculator shows pre-tax price. Taxes are typically applied to the final discounted price.
Q5: Does order of discounts matter?
A: Mathematically, the order doesn't affect the final price (a 20% then 10% discount equals 10% then 20%).