Discount Calculator
Calculate the final price and savings after one or more discounts. Stacked discounts apply sequentially, not additively.
Formula last reviewed 4 August 2026 · How we verify our calculators
Final price
- You save
- ₹200
- Effective discount
- 20.0%
Updates live as you type
Frequently asked questions
Multiply the price by the discount percentage to get the savings, then subtract it from the original. A 20% discount on ₹1,000 saves ₹200, leaving ₹800.
No. Sequential discounts apply one after another, not by adding the percentages. A 20% then 10% discount on ₹1,000 gives ₹720, not ₹700 — an effective 28% off.
It is the single percentage that would produce the same final price as your combined discounts — handy for comparing offers like “20% + 10%” against a flat “25% off”.
No. This calculates the pre-tax sale price. To add GST on top of the discounted price, use our GST calculator.
A thousand down to eight hundred
An original price of ₹1,000 with a 20% discount gives a final price of ₹800 — a saving of ₹200, an effective discount of 20%.
Discount = original × rate ÷ 100 Final = original − discount
Straightforward with one discount. The arithmetic becomes counter-intuitive the moment there are two.
Stacked discounts multiply, they do not add
"50% off, then an extra 20% off" is not 70% off.
The second discount applies to the already-reduced price: ₹1,000 → ₹500 → ₹400. That is 60% off, not 70.
The general form for successive discounts:
Final = original × (1 − d₁) × (1 − d₂) × (1 − d₃)
Effective discount = 1 − (1 − d₁)(1 − d₂)(1 − d₃)
For 50% and 20%: 1 − (0.5 × 0.8) = 0.60, so 60%.
Two consequences worth carrying:
The order does not matter. Multiplication is commutative, so 50% then 20% equals 20% then 50%. Stores sometimes imply otherwise; they are the same.
Stacked discounts can never reach 100%. Even 50% + 50% + 50% leaves 12.5% of the original price.
Recovering the original price
Original = final ÷ (1 − discount rate)
An item costing ₹1,500 after 25% off was originally 1,500 ÷ 0.75 = ₹2,000.
This is the check worth running against advertised "was" prices, and the same arithmetic used to remove GST from an inclusive amount.
Reading retail discounts critically
"Up to 70% off" means the best item in the range is 70% off, and typically very few are.
Inflated reference prices. A "50% off ₹4,000" item that has never sold at ₹4,000 is a 0% discount with extra steps. Consumer protection rules require the reference price to be one at which the goods were genuinely offered, and enforcement is uneven.
Buy-one-get-one-free is 50% off when you want two, and 0% off when you want one.
Buy two get one free is 33.3% off, not 50 — you receive three items and pay for two, so one item in three is free: 1 ÷ 3 = 33.3%.
Cashback is not a discount. It is a future credit, often restricted in where it can be spent and when it expires, and it should be valued below its face amount.
Discount plus GST. GST is computed on the discounted price when the discount is given at the time of sale and shown on the invoice. A discount given afterwards generally does not reduce the taxable value unless it was agreed in advance and linked to the specific invoice.
What a discount costs the seller
Worth knowing if you are on the other side. A 20% discount on a product with a 30% margin does not reduce profit by 20% — it reduces it by two-thirds. Selling at ₹800 against a ₹700 cost leaves ₹100 of profit rather than ₹300.
This is why discounting is far more expensive than it appears, and why volume has to rise substantially to compensate.
Common mistakes
Adding stacked discounts. They multiply; 50 + 20 is 60, not 70.
Trusting the reference price. Check whether the item ever sold at it.
Valuing cashback at face. It is restricted future credit.
Reading BOGO as 50% off one item. It is 50% only if you wanted two.
Discounting without recomputing margin. A 20% discount can remove most of the profit.