diff --git a/src/lib/cart.js b/src/lib/cart.js
index 18d910e..86842ec 100644
--- a/src/lib/cart.js
+++ b/src/lib/cart.js
@@ -1,5 +1,5 @@
 // SPDX-License-Identifier: MIT
-// integrity: 243e61045d07
+// integrity: 03ac0ce97327
 import { TAX_RATE } from '../generated/rates.js';
 import { roundCents } from './money.js';
 
@@ -10,3 +10,7 @@ export function subtotal(items) {
 export function total(items) {
   return roundCents(subtotal(items) * (1 + TAX_RATE));
 }
+
+export function discount(items, percent) {
+  return roundCents(subtotal(items) * (1 - percent / 100) * (1 + TAX_RATE));
+}
diff --git a/src/lib/coupons.js b/src/lib/coupons.js
new file mode 100644
index 0000000..fde3110
--- /dev/null
+++ b/src/lib/coupons.js
@@ -0,0 +1,5 @@
+// SPDX-License-Identifier: MIT
+// integrity: 9b7c90e6e877
+export function validateCode(code) {
+  return typeof code === 'string' && /^[A-Z0-9]{4,12}$/.test(code);
+}
diff --git a/tests/lib/cart.test.js b/tests/lib/cart.test.js
index 1a2052c..9a999d4 100644
--- a/tests/lib/cart.test.js
+++ b/tests/lib/cart.test.js
@@ -1,8 +1,8 @@
 // SPDX-License-Identifier: MIT
-// integrity: 3c2fa24c4dfb
+// integrity: 499d8bae4e45
 import { test } from 'node:test';
 import assert from 'node:assert/strict';
-import { subtotal, total } from '../../src/lib/cart.js';
+import { subtotal, total, discount } from '../../src/lib/cart.js';
 
 const items = [{ price: 10, qty: 2 }, { price: 5, qty: 1 }];
 
@@ -13,3 +13,9 @@ test('subtotal adds price times quantity', () => {
 test('total applies tax and rounds to cents', () => {
   assert.equal(total(items), 27);
 });
+
+test('discount takes percent off subtotal before tax', () => {
+  assert.equal(discount(items, 10), 24.3);
+  assert.equal(discount(items, 0), total(items));
+  assert.equal(discount(items, 100), 0);
+});
diff --git a/tests/lib/coupons.test.js b/tests/lib/coupons.test.js
new file mode 100644
index 0000000..bf0740d
--- /dev/null
+++ b/tests/lib/coupons.test.js
@@ -0,0 +1,20 @@
+// SPDX-License-Identifier: MIT
+// integrity: ea5298754148
+import { test } from 'node:test';
+import assert from 'node:assert/strict';
+import { validateCode } from '../../src/lib/coupons.js';
+
+test('validateCode accepts 4-12 uppercase letters or digits', () => {
+  assert.equal(validateCode('ABCD'), true);
+  assert.equal(validateCode('SAVE20'), true);
+  assert.equal(validateCode('ABCDEFGH1234'), true);
+});
+
+test('validateCode rejects bad length, case, characters and types', () => {
+  assert.equal(validateCode('ABC'), false);
+  assert.equal(validateCode('ABCDEFGH12345'), false);
+  assert.equal(validateCode('save20'), false);
+  assert.equal(validateCode('SAVE-20'), false);
+  assert.equal(validateCode(''), false);
+  assert.equal(validateCode(null), false);
+});