Invoice Discount Calculator
Calculate a percentage discount before tax and see the savings and discounted subtotal you can place on the invoice.
Formula: Discount amount = subtotal x discount percentage. Discounted subtotal = subtotal - discount amount.
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Enter the numbers
Calculated result
Discount amount
$240.00
10.00% of $2,400.00
Subtotal after discount
$2,160.00
Before any applicable tax or shipping
Formula: Discount amount = subtotal x discount percentage. Discounted subtotal = subtotal - discount amount.
Use the result correctly
What the calculation means
Name the reason for the discount, such as volume, promotion, early payment, or courtesy adjustment. Show the original subtotal and discount separately instead of silently lowering line-item prices.
Useful for
- Calculate a volume or promotional discount
- Show customer savings on a quote or invoice
- Check a percentage before entering it in the generator
Frequently asked questions
Is an invoice discount applied before tax?
Often the taxable base reflects eligible discounts, but treatment varies by transaction and jurisdiction. This tool calculates the discount before tax and does not decide tax treatment.
What is the difference between a flat and percentage discount?
A flat discount subtracts a fixed amount. A percentage discount subtracts a share of the subtotal.
Should I discount every line or the subtotal?
Use the method agreed with the customer and supported by your system. A subtotal discount is usually easier to read when it applies to the entire invoice.
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