20 percent off of $50 means you pay $40 and save $10. The discount itself is $50 times 0.20, which is $10, and $50 minus $10 leaves $40 at the register. In store language, $50 is the original price (sometimes called the list price), $10 is the markdown, and $40 is the sale price — the number you actually pay before tax.
Percent Off Is a Share, Not a Dollar Amount
I got burned by this exact kind of tag once. A pair of shoes I wanted was $50, the sign screamed 20 percent off, and in my head I somehow decided that meant I'd pay $30 — as if 20 percent off meant "take $20 off." It doesn't, and I only caught it at the register when the total said $40. The percent is a share of the price, not a dollar amount. Twenty percent of $50 is $10, not $20. That's also the difference between a percent-off deal and a dollars-off deal: "$10 off $50" and "20 percent off $50" happen to be the same saving here, but "$20 off" on a $50 item would be a 40 percent discount. Same shelf, very different deals, and the tag won't explain that for you.
The Two-Step Trick for Any Sale Tag
Here's the quick way to do it anywhere. Find 10 percent first — $5 on a $50 item — and double it for 20 percent, which is $10. Subtract from the price: $40 to pay. Same trick works on any tag. A $80 jacket at 20 percent off? Ten percent is $8, double it to $16, so you pay $64. A $120 coat? Ten percent is $12, double is $24, you pay $96. Two steps, no calculator.
The Stacked Discount Trap
Now the trap that actually costs people money: stacked discounts, also called double discounts. A store offers 20 percent off, then another 10 percent off at the register, and the sign makes it sound like 30 percent off. It isn't. Take that $50 item: 20 percent off brings it to $40, and then 10 percent off $40 takes off another $4, leaving $36. A true 30 percent off would have left you at $35. That one-dollar difference is small on $50 and real money on $500, and stores count on you not noticing. Coupons stack the same way — a coupon's percentage usually comes off the already-discounted price, not the original. If you ever want to check a stacked deal before you buy, the discount calculator here handles the second discount and the tax in one go — I wish I'd had it open the day I bought those shoes.
Don't Forget the Sales Tax
Sales tax is the other quiet add-on. Most US stores show the pre-tax price on the tag, so your $40 after-discount price isn't the final total. With, say, 8 percent tax, you pay $43.20 at the register. The order matters here: discount first, then tax on the discounted price. That's how stores do it, and it's in your favor — you're taxed on $40, not on $50. And if you're working backwards — the tag says $40 after a 20 percent discount, what was the original? Divide by 0.80: $40 ÷ 0.80 = $50. That's the reverse discount, handy when a friend brags about a sale price and you want to know what they really saved.
So the next time a tag says 20 percent off $50, you know the whole story in about three seconds: $10 saved, $40 before tax, and if there's a second discount, it comes off the $40, not the $50. The shopping calculators cover the rest of the sale-rack math, and the free online calculators page is worth a bookmark for the next time a tag tries to rush you. Or just browse all calculators when the next everyday number shows up.
FAQs
Q: How much is 20 percent off of $50?
A: You pay $40 and save $10.
Q: Is 20 percent off the same as $20 off?
A: No — 20 percent of $50 is $10, so you save $10, not $20. $20 off $50 would be 40 percent off.
Q: What is 20 percent off plus an extra 10 percent off?
A: Not 30 percent. On $50 it goes $50 → $40 → $36, while a true 30 percent off would be $35.
Q: Do I pay tax on the original price or the discounted price?
A: The discounted price. Tax comes after the discount.
Q: What was the original price if I paid $40 after 20 percent off?
A: $50 — divide the sale price by 0.80.