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Free Tool · Discount Math

Calculate discounts & final price

See how much you save and what you actually pay after any discount percentage. Useful for shopping, business pricing, and sale analysis.

Instant Math Live Calculation Visual Breakdown

Discount details

Enter the original price and discount percentage to see savings + final price.

Quick discount reference

  • 10% off — you pay 90% of the original price.
  • 25% off — you pay 75%, save a quarter.
  • 50% off — half price, classic markdown.
  • Stacked discounts — multiply (1 − d%), don\'t add. 30%+10% ≠ 40%.
  • BOGO (Buy 1 Get 1) — equivalent to 50% off per unit.
  • GST on discount — applied to final discounted price (point-of-sale).
Final price
₹3,750
You save ₹1,250 on ₹5,000 at 25% off
Original price₹5,000
Discount %25%
Discount amount₹1,250
Final price₹3,750

How a discount is calculated

Discount math is straightforward — but useful for pricing strategy, sale planning, and comparison shopping.

  1. 01

    Original price

    The listed price before any discount is applied.

    price = 5000
  2. 02

    Discount percentage

    What percentage off the original price is being offered.

    discount = price × pct ÷ 100
  3. 03

    Final price

    Subtract the discount from original to get final payable.

    final = price − discount
    // or: price × (1 − pct/100)
FormulaFinal = Original × (1 − Discount% ÷ 100)For a stacked discount (e.g., 30% + 10% off): apply sequentially, not additively.
Why we use this formula by default.
Indian payroll convention, statutory references, and the SaaS tooling that runs payroll all converge on this approach. Below are the authoritative sources we cross-checked.
01
Consumer Law

Consumer Protection Act, 2019

Indian consumer protection framework for pricing transparency.

02
Standard

MRP (Maximum Retail Price)

Indian statutory pricing standard for consumer goods.

03
GST Treatment

CBIC GST on Discounts

Pre-sale vs post-sale discount GST treatment guidance.

04
Tax Reference

ClearTax Discount Tax

Accounting and tax treatment for discounts and offers.

05
Theory

Investopedia Discount vs Markup

Standard pricing theory and percentage math.

06
Accounting

ICAI Revenue Recognition

Indian GAAP for revenue net of trade and cash discounts.

FAQs about discounts

Common questions about discount calculation and sale strategy.

Discount amount = original price × discount% ÷ 100. Then final price = original − discount. Example: 25% off ₹5,000 = ₹1,250 discount, final ₹3,750.

No. A 30% + 10% discount is NOT 40% off. It's 30% off first → ₹3,500 → then 10% off that → ₹3,150 (37% effective discount).

Reverse formula: original = final ÷ (1 − discount%/100). Example: final ₹3,750 at 25% off → original = ₹3,750 ÷ 0.75 = ₹5,000.

Markup = increase from cost to selling price (cost-based). Discount = reduction from listed price (sales-based). 50% markup ≠ 50% discount when reversed.

For unconditional discounts at the point of sale: GST is on the discounted price. For post-sale discounts: GST is on original. Always read the invoice carefully.

Depends on your need vs. the saving. Industry rule: anything above 15% off MRP is meaningful for branded goods. Below that, often just shelf-rotation pricing.

Mathematically no — that would mean negative price. Real-world: only via cashback or stacked offers that exceed item value (rare and usually a marketing gimmick).

Multiply (1 − each%/100). E.g., 30% + 10% + 5%: 0.7 × 0.9 × 0.95 = 0.5985 → 40.15% effective discount.

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