Final Price Formula:
From: | To: |
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 multiplicatively, not additively. Each discount is applied to the already discounted price from the previous step.
Details: Understanding sequential discounts helps consumers make informed purchasing decisions and businesses set appropriate pricing strategies.
Tips: Enter the original price in USD, then both discount rates as decimals between 0 and 1 (e.g., 0.20 for 20% off).
Q1: Why multiply discounts instead of adding them?
A: Discounts are applied sequentially - the second discount applies to the already reduced price, not the original price.
Q2: What's the difference between this and a single combined discount?
A: Two 10% discounts equal a 19% total reduction (1 - 0.9×0.9), not 20%. The double discount gives a slightly better deal.
Q3: How do I convert percentage discounts to decimals?
A: Divide the percentage by 100 (e.g., 15% = 0.15, 25% = 0.25).
Q4: Can I add more than two discounts?
A: The same principle applies - just multiply by (1 - d₃), (1 - d₄), etc., for each additional discount.
Q5: Does this work for price increases too?
A: Yes, use negative discount values for price increases (e.g., -0.10 for a 10% markup).