Discount Calculator
Work out the final price after a discount and exactly how much money you save.
The discount calculator shows the real price of a sale item. Enter the marked price and the discount percentage, and it instantly tells you what you pay and how much you save — useful for shopping, pricing your own products or checking a billed discount.
How to use the calculator
- Enter the original (marked) price.
- Enter the discount percentage offered.
- The result shows the final price and your savings.
- For stacked discounts, run the final price through the calculator again with the second discount.
How it is calculated
Savings = Price − Final price
Worked example
₹2,500 with a 30% discount
Savings = 2,500 × 0.30 = ₹750
Final price = 2,500 − 750 = ₹1,750.
Who should use this calculator
- Shoppers checking what a sale price actually is before committing, especially during festival sales.
- Retailers and small business owners setting prices and deciding how much margin a discount leaves behind.
- Anyone comparing two offers — a bigger discount on a higher price is not automatically the better deal.
- People verifying a discount shown on a bill, which is occasionally applied to the wrong base.
Common mistakes to avoid
- Adding stacked discounts together. 20% followed by 10% is not 30% off. The second discount applies to the already-reduced price, so the total is 28%.
- Applying the discount after tax. Shops normally deduct the discount first and charge GST on the discounted value. Check the order on the invoice.
- Ignoring delivery, packaging and handling charges. A 40% discount plus ₹300 of shipping can cost more than a 25% discount with free delivery.
- Assuming a bigger percentage is a bigger saving. 30% off an inflated MRP can be worse than 15% off a genuinely lower price elsewhere. Compare final prices, not discount percentages.
- Forgetting that a discount is not profit. For a seller, discounting comes straight out of margin, and a 30% discount on a 25% margin product sells at a loss.
Why stacked discounts multiply
A single 30% discount takes ₹2,500 down to ₹1,750, saving ₹750. Two stacked discounts of 20% and 10% look similar but are not: the first takes ₹2,500 to ₹2,000, and the 10% then applies to ₹2,000, leaving ₹1,800. The total saving is ₹700 — an effective discount of 28%, not 30%.
The gap widens as the discounts get larger. A 50% discount followed by another 50% leaves 25% of the original price, an effective discount of 75%, not 100%. When you see multiple discounts advertised, run each one sequentially through the calculator and compare the final price with the alternatives rather than comparing headline percentages.
Discount terms explained
- Marked price
- The listed price before any discount, often called MRP. Discounts are calculated on this figure.
- Effective discount
- The single discount that produces the same final price as a series of stacked discounts.
- Trade discount
- A discount given to a retailer or reseller on the list price, usually deducted before tax is applied.
- Cash discount
- A reduction for paying promptly, often 1–2% for payment within a set number of days.
- Margin impact
- How much profit a discount removes. A discount comes out of margin, not out of cost, so it hurts more than it appears to.
- List price
- The quoted price before any discount is applied, which may differ from the manufacturer's suggested price.
What a discount costs the seller
Discounts look smaller from the seller's side than they are. On an item with a 25% margin, giving 25% off sells it at cost. A 30% discount on that same product sells at a loss, and it takes a substantial increase in volume to make that back. That is why small retailers need to know their margin before joining a sale: a discount that attracts customers is only worth it if the extra volume delivers more total profit than the original price would have. The calculator shows the buyer's saving — the seller should also check what is left after the cut.
Frequently asked questions
How do I calculate a discount quickly?
Multiply the price by the discount percentage and divide by 100 to get the saving, then subtract it from the price. For 30% off ₹2,500, the saving is ₹750 and you pay ₹1,750.
How do two discounts in a row work?
Stacked discounts multiply rather than add. 20% then 10% off is not 30% — it is a total discount of 28%, because the second discount applies to the already reduced price.
Does the discount include GST?
Usually the discount is applied to the price before GST, and GST is then charged on the discounted value. Check the invoice to see the order in which the shop applied them.