What is a discount?
A discount is a reduction from the original price of a product or service. Percentage discounts are commonly used during sales, promotions, clearance events and coupon offers.
For example, if an item normally costs ₹2,000 and a store offers 20% off, the discount reduces the amount you need to pay by 20% of the original ₹2,000 price.
How to calculate a discount
To calculate a percentage discount, first find the percentage of the original price that will be removed. That amount is your savings.
Discount calculation example
Suppose a product has an original price of ₹2,000 and is available at a 20% discount.
You save ₹400 and pay ₹1,600. This means 80% of the original price remains payable.
How to use the Discount Calculator
The calculator can handle a normal percentage discount and an optional second percentage reduction.
Enter the regular price before any discounts are applied.
Add the main percentage discount advertised for the product or service.
If another percentage discount applies after the first offer, use the optional second field.
See the final price, total savings, effective discount and payable percentage.
How an additional discount works
When two percentage discounts are applied one after another, the second discount is normally calculated using the reduced price after the first discount.
This is called a successive discount. Because the second percentage applies to a smaller amount, simply adding the two percentages usually gives the wrong result.
Example: 20% off plus another 10% off
Suppose the original price is ₹2,000. The first discount is 20%.
Ten percent of ₹1,600 is ₹160, so the final price becomes ₹1,440.
Total savings are ₹560. Compared with the original ₹2,000 price, ₹560 represents an effective discount of 28%.
Why 20% + 10% does not equal 30%
The first 20% discount leaves 80% of the original price. The second 10% discount then removes 10% of that remaining 80%.
Ten percent of 80% is another 8% of the original price. Therefore the total reduction is 20% + 8%, which equals 28%.
What is effective discount percentage?
Effective discount measures the total reduction from the original price after every percentage discount has been applied.
Sale price vs savings amount
The regular price before the discount is applied.
The amount removed from the original price because of the discount.
The amount remaining after the applicable percentage discounts.
The total percentage reduction compared with the original price.
Common discount percentages
Stores commonly advertise offers such as 5%, 10%, 20%, 25%, 30%, 40% or 50% off. The amount saved depends on both the percentage and the original price.
On ₹1,000, a 10% discount saves ₹100 and leaves ₹900 payable.
On ₹1,000, a 20% discount saves ₹200 and leaves ₹800 payable.
On ₹1,000, a 25% discount saves ₹250 and leaves ₹750 payable.
On ₹1,000, a 50% discount saves ₹500 and leaves ₹500 payable.
Discount calculator for shopping sales
A discount calculator can make it easier to compare products during online or offline sales. Instead of focusing only on the advertised percentage, you can check the actual amount saved and the final amount payable.
This can be especially useful when two products have different original prices or when one offer includes an additional percentage discount.
Using an extra percentage coupon
Some promotions combine an advertised sale price with an additional percentage coupon, such as "20% off plus an extra 10% off."
If the merchant applies the coupon to the reduced sale price, you can enter the first offer in the Discount field and the coupon percentage in the Additional Discount field.
Percentage coupon vs fixed-value coupon
An offer such as 10% off reduces the applicable price by a percentage.
An offer such as ₹500 off removes a fixed amount rather than a percentage.
The optional second field in this calculator is intended for another percentage discount. Fixed-value coupons need to be handled separately.
Discount and GST are different calculations
A discount reduces a price, while GST or another sales tax may be added according to applicable tax rules. They should not automatically be treated as the same calculation.
Whether tax is calculated before or after a discount can depend on applicable rules and the transaction. If you specifically need a GST calculation, use the ToolVerse GST Calculator.
Why the checkout price may differ
The calculated discount can be mathematically correct while the final amount charged by a merchant is still different.
Applicable taxes may change the final amount payable.
Delivery or shipping fees may be added after the product discount.
Coupons can require a minimum purchase amount or apply only to selected products.
Merchants or payment systems may round monetary values differently.
Tips for comparing discount offers
A larger advertised percentage does not automatically mean that a purchase is the better deal. Consider the original price, final price and actual amount saved.
When comparing successive discounts, compare their effective discount percentages instead of simply adding the advertised percentages together.
This Discount Calculator is intended for general percentage-discount calculations and estimates. Actual prices can depend on merchant terms, coupon eligibility, taxes, shipping, service fees, minimum-purchase requirements and rounding rules.
Check the final price and applicable offer terms shown by the seller before completing a purchase.