Discount Formula Explained
Discount Amount = Original Price × (Discount % ÷ 100)
Final Price = Original Price − Discount Amount
| Original Price | Discount | Discount Amount | Final Price |
|---|---|---|---|
| ₹2,000 | 20% | ₹400 | ₹1,600 |
| ₹5,000 | 35% | ₹1,750 | ₹3,250 |
| ₹12,000 | 15% | ₹1,800 | ₹10,200 |
| ₹50,000 | 8% | ₹4,000 | ₹46,000 |
Stacked Discount Trap — The Most Common Trick
"50% off + additional 20% off" — what's the actual discount?
Starting price: ₹1,000 → After 50% off: ₹500 → After 20% off ₹500 = ₹100 off = ₹400
Total discount: ₹600 = 60% off. NOT 70% off.
| Advertised | Actual Discount | Difference |
|---|---|---|
| 40% + 10% = "50%" | 46% | 4% less than claimed |
| 50% + 20% = "70%" | 60% | 10% less than claimed |
| 30% + 30% = "60%" | 51% | 9% less than claimed |
| 70% + 30% = "100%" | 79% | 21% less than claimed |
Reverse Discount — Find Original Price
If you know the final price and discount %, find original price:
Original = Final Price ÷ (1 − Discount%)
Example: Item now ₹850 after 15% off → Original = ₹850 ÷ 0.85 = ₹1,000
Smart Shopping Tips
- Always calculate final price yourself — don't trust "XX% off" signs
- Compare on price-per-unit for bulk buys (bigger pack isn't always cheaper)
- Track original prices before sales — Amazon Camelcamelcamel shows price history
- GST-inclusive vs exclusive prices — always compare GST-inclusive
- Cashback + discount stack correctly: 10% cashback on ₹900 (after 10% off ₹1000) = ₹810 effective
🏷️ Calculate Discount Price
Use Discount Calculator →Q: What is the difference between discount and rebate?
Discount reduces the price at point of sale. Rebate is a partial refund after purchase (you pay full, then claim back). Rebates are used by companies because many buyers forget to claim, effectively making the discount cost lower for the seller. Always set a reminder to claim rebates.
Q: How do I calculate percentage discount when comparing two prices?
Discount % = ((Original − Final) ÷ Original) × 100. Example: Item was ₹1,200, now ₹900. Discount = ((1200−900) ÷ 1200) × 100 = 300÷1200×100 = 25%.
⚠️ Educational purposes only. Please consult qualified professionals for personalised advice.