Is an extra 20% off items already reduced by 25% better than waiting for a 40% sale?

Check it in the calculator

1. Open the Discount calculator and type the item's original price, 300.
2. Type 25 as the first discount, then add a discount and type 20.
3. The final price is 180 and the equivalent single discount is 40%.
4. For comparison, remove the second discount and type 40 as the first: the price is 180 too.

Add the rates and you might think today's offer is worth 45% and beats waiting. The calculator shows it is worth exactly 40%.

When the two offers are not equal

The match here is a coincidence of the numbers. Make the extra discount 30% and it changes: 25% then 30% on 300 gives 157.5, an equivalent 47.5%. Now today's offer beats the 40% sale and there is no reason to wait. The rule: multiply what each discount leaves, then compare that with what the other offer leaves.

So what decides it

• Size and colour: popular items sell out first, and the bigger markdown usually lands on whatever is left.
• Is the bigger sale certain? 'Going to 40% next week' is not always a promise, and your item may not be included.
• Conditions on the extra discount: some codes have a minimum spend or expire at a set time.
• Returns: some stores tighten their returns policy on final markdowns.

For sellers: pick the format that fits your goal

Since both offers cost you the same per item, the choice between them is a marketing one. An extra discount on top of a sale gives a reason to buy now, and lets you target it with a code for a particular group of customers. One big markdown reads more easily on a sign. If you go with two discounts, never write 'up to 45% off', because nobody will get more than 40%.