Percentage or fixed-amount discount: which is better?
Two different calculations with the same goal
Whether a percentage discount or a fixed-amount discount saves you more depends almost entirely on how much is in your basket at that moment. Both types of discount reduce the amount you pay in the end, but they are calculated in fundamentally different ways, and which one comes out ahead regularly flips depending on the order value. A voucher for 15 euros sounds more concrete at first than "20 per cent off", but it is not automatically the better deal.
This article shows how both calculations work and from what order value one or the other is worth more to you.
How a percentage discount works
A percentage discount takes a certain share off your current order value, however high that order value happens to be. That means the bigger your basket, the larger the actual amount the percentage discount takes off in the end. With a very small order, a percentage discount stays correspondingly small, even if the advertised percentage sounds high.
How a fixed-amount discount works
A fixed-amount discount, on the other hand, always takes off the same sum, regardless of the order value, as long as any minimum order value has been reached. On a small basket, that fixed sum makes a big difference in percentage terms, but on a large basket a comparatively small one. A fixed-amount discount is therefore especially worthwhile when your order value is only just above the required minimum.
A worked example with different basket values
Say you can choose between two offers: 20 per cent off, or 15 euros off with a minimum order value of 50 euros. If your basket comes to 50 euros, the percentage discount saves you 10 euros, while the fixed-amount discount saves you 15 euros. In this case, the fixed sum is clearly better. If your basket rises to 100 euros, the percentage discount already saves you 20 euros, while the fixed-amount discount stays at 15 euros. With a basket of exactly 75 euros, both options in this example would be worth the same 15 euros. Below that, the fixed sum is better; above it, the percentage wins.
Why shops often tie fixed amounts to a minimum order value
A fixed-amount discount without a minimum order value could, in theory, wipe out the whole amount or more on a very small basket, which makes no economic sense from the shop's point of view. A minimum order value limits that risk and at the same time encourages customers to add a little more to their basket to reach the threshold. A percentage discount needs this limit less often, because it moves in proportion to the order value anyway and stays predictable for the shop even without a fixed lower limit.
Why both types exist side by side in practice
A percentage discount is easy to apply to a whole group of products, such as every item in a category, without having to set an amount for each item individually. A fixed-amount discount, by contrast, is better suited to offers that should stay the same whatever you buy, for example as a thank-you for signing up to a newsletter or as compensation for a delay. Neither type is fundamentally more generous; they simply suit different situations in which a shop wants to offer a discount.
For you as a shopper, that changes nothing about the actual calculation. The benefit is the same amount of money, whatever the reason the offer was created in the first place. All that matters is how much is in your own basket at the moment you order.
What to check right at the checkout
- With a percentage discount, quickly work out what amount it comes to for the actual value of your basket.
- With a fixed-amount discount, check whether your basket already reaches the required minimum order value.
- If you are offered two promotions at once, compare them by the amount actually deducted.
- Bear in mind that a high percentage on a low basket value often saves less money than the number first suggests.
When both types of discount are offered at the same time
Some promotion pages let you choose between a percentage discount and a fixed amount, precisely because the two options are more or less attractive depending on the basket. In that case, it is always worth doing the quick calculation with your own actual order value instead of choosing whichever option has the bigger-looking number at first glance. Whether several discounts can be combined in one order at all also depends on the conditions of the promotion in question, as explained in the article Combining discounts: what works together.
Before you redeem the code
What lies behind minimum order values, exclusions and combinability in the small print is explained in the article Minimum order value, exclusions, combinability. You can read about the practical difference between voucher codes, discount codes and promo codes in the article Voucher code, discount code, promo code. You can find currently valid codes under coupons, and how we check them is explained under How it works.
Frequently asked questions
Is a percentage discount always better on large orders?
In most cases, yes, because the amount deducted grows in proportion to the basket value. Above a certain order value, the percentage discount beats any fixed amount.
Why do fixed-amount discounts usually require a minimum order value?
Without a minimum order value, a fixed sum could make up a disproportionately large share of a very small basket, or even the whole amount. The minimum order value limits this risk for the shop.
How do I find the point at which one option is worth more?
Put the fixed amount in relation to the percentage: divide the fixed amount by the percentage written as a decimal. The result is the basket value at which both options are worth the same. Below it, the fixed amount is better; above it, the percentage discount wins.
Does delivery count in this comparison?
No, the calculation only refers to the basket value the discount is applied to. With most promotions, delivery costs are added separately and do not change the discount calculation itself.