Discount Calculator

What is a Discount?

A discount is a reduction in the original price of a product or service. Discounts are offered by sellers to attract customers, clear stock, or during festive and seasonal sales. Understanding how discounts work helps you make smarter purchasing decisions and know exactly how much you save on every purchase.

Discount Formula

The formula to calculate the discount amount is: Discount Amount = (Original Price × Discount %) / 100. The final price after discount is calculated as: Final Price = Original Price − Discount Amount. For example, if a product costs ₹2,000 and the discount is 20%, the discount amount is ₹400 and the final price is ₹1,600.

How to Use This Calculator

1. Enter the original price of the product or service.

2. Enter the discount percentage being offered.

3. Click "Calculate Discount" to see the discount amount, final price and your savings.

What is a Double Discount (Successive Discount)?

A double or successive discount is when two discounts are applied one after another. For example, "50% + 20% off" does not mean 70% off. First, 50% is applied on the original price, and then 20% is applied on the reduced price. The effective discount for 50% + 20% is actually 60%, not 70%. The formula is: Effective Discount = a + b − (a × b) / 100, where a and b are the two discount percentages.

Frequently Asked Questions

How do I calculate the original price from a discounted price?

If you know the final price and the discount percentage, you can find the original price using: Original Price = Final Price / (1 − Discount% / 100). For example, if the final price is ₹800 after a 20% discount, the original price was ₹800 / 0.80 = ₹1,000.

Is discount calculated on MRP or selling price?

In India, discounts are typically calculated on the MRP (Maximum Retail Price) printed on the product. The selling price is the amount you actually pay after the discount is applied on the MRP.

How does GST work with discounts?

In India, GST is calculated on the actual transaction value (after discount), not on the MRP. So if a ₹1,000 item is sold at ₹800 after a 20% discount, GST is charged on ₹800, not ₹1,000.