Discount formulas
Example
A ₹2,999 item at 40% off costs ₹1,799.40. An "extra 10% off" applies to that reduced price, not the MRP, so you pay ₹1,619.46. The effective discount is 46%, not 50%. That is why stacked discounts always look bigger than they are.
Discounts and GST
In India, a discount shown on the invoice at the time of sale reduces the value on which GST is charged. MRP already includes GST, so the discounted retail price you pay also includes GST. For business pricing, check your margin after the discount with the Profit Margin Calculator.
How much a discount costs a seller
A discount comes straight out of margin. If your margin is 30% and you give 10% off, you lose a third of your profit per unit and need to sell 50% more units to earn the same total profit.
Frequently asked questions
Is 20% + 20% off the same as 40% off?
No. It equals 36% off, because the second 20% applies to an already reduced price: 1 − 0.8 × 0.8 = 0.36.
How do I find the original price from the sale price?
Divide the sale price by (1 − discount/100). For example, ₹1,500 after 25% off was originally ₹1,500 ÷ 0.75 = ₹2,000.
Results are for planning and information only and are not accounting or financial advice. Check important figures with your accountant.