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Coupon math guide

Percentage Off vs Dollar Off: Find the Better Coupon

A fixed-dollar coupon wins on smaller carts; a percentage coupon becomes stronger as the eligible subtotal grows.

Find the break-even amount

Convert the percentage to a decimal and divide the fixed discount by it. At the break-even cart, both offers save the same amount. Below it, the dollar coupon wins; above it, the percentage coupon wins.

Example: $10 off or 20% off

The break-even cart is $50. On a $40 eligible cart, 20% saves $8, so $10 off wins. On a $75 cart, 20% saves $15, so the percentage coupon wins.

Fixed and percentage coupons at different carts

The larger cart makes the percentage offer stronger.

Scenario$20 off15% offResult
$80 eligible cartSave $20Save $12$20 off wins by $8
$133.33 eligible cartSave $20Save $20Break-even
$200 eligible cartSave $20Save $3015% wins by $10

The break-even point is a starting point

The simple formula assumes both coupons apply to the same subtotal without caps. With $20 off versus 15% off, the mathematical break-even is $133.33. But a $20 coupon requiring a $100 minimum cannot be used below that amount, and a 15% coupon capped at $18 stops growing at $120.

After applying those terms, the fixed coupon wins at every eligible cart above $100 because the percentage offer never exceeds $18. A headline rate cannot replace the actual maximum saving.

Compare the basket you would buy without the coupon

A minimum-spend coupon can alter the basket itself. If you planned to spend $70 but add $30 to use a $20-off-$100 offer, the checkout becomes $80—$10 more than the original plan. The discount is real, but it did not reduce cash outlay.

  • Write down the original planned subtotal.
  • Remove excluded products from the eligible amount.
  • Apply the minimum spend and maximum discount.
  • Check whether the coupon changes shipping eligibility.
  • Compare both final totals, not only coupon values.

Apply caps and minimum spends

A “20% off up to $25” coupon stops growing at a $125 eligible cart. A fixed coupon may require a minimum purchase. Use the eligible subtotal after exclusions and verify whether shipping or tax counts toward the minimum.

Compare final totals when offers differ

If one coupon changes free-shipping eligibility, comparing coupon values alone is not enough. Calculate the complete checkout under each offer.

Our guides use independent examples and transparent arithmetic. See how we research, calculate, and update content in our editorial policy, or review the latest changes in our update log.

Questions shoppers ask

Common questions

Is 20% off better than $20 off?

They are equal on a $100 eligible purchase. Below $100, $20 off wins; above $100, 20% off wins unless the percentage coupon is capped.

Do returns affect coupons?

They can. Stores may allocate the discount across items or remove a threshold coupon when a return drops the retained purchase below the minimum.