the guide
Discount calculator: the real price after discounts
By Shivam Bhandari · Reviewed 31 October 2026 · How we write
Discounts are everywhere — in festive sales, bulk deals and stacked offers like ‘50% + extra 20% off’. Successive discounts don't add up: each one applies to the already-reduced price.
For businesses, understanding the effective discount protects margins; for buyers, it shows the real saving.
the formula
Final price = Price × (1 − D1%) × (1 − D2%)
- · Effective discount = 1 − Final price ÷ Original price.
- · Add GST after discount if the price is exclusive of GST.
Worked example: stacked festive offer
- Original price ₹2,000 with 50% off plus an extra 20% off.
- After 50%: ₹1,000. After a further 20%: ₹800.
- Effective discount = 60%, not 70%.
Tips
- 1As a seller, calculate margin after discount before launching a sale.
- 2Use stacked discounts carefully — they can look bigger than they are, and misleading claims can breach consumer law.
- 3Prefer value-adds (bundles, free shipping) to deep discounts where possible.
- 4Track how many discounted buyers return at full price.
Frequently asked questions
How do I calculate a discount percentage?
Discount % = (Original price − Sale price) ÷ Original price × 100.
Is 50% + 20% the same as 70% off?
No. The 20% applies to the already-halved price, so the effective discount is 60%.
Is GST charged before or after discount?
Generally GST is charged on the transaction value after discounts shown on the invoice.
How do discounts affect my profit?
A discount comes straight out of your margin. A 20% discount on a product with a 30% margin cuts profit per unit by two-thirds.