The discount formula
A discount reduces a price by a percentage of itself. The formula for the final price is:
To go the other direction — finding the original price when you only know the sale price and the discount rate — divide instead of multiply:
Reference: common discount amounts
| Discount | Rs. 1,000 becomes | You save |
|---|---|---|
| 10% | 900 | 100 |
| 20% | 800 | 200 |
| 25% | 750 | 250 |
| 30% | 700 | 300 |
| 40% | 600 | 400 |
| 50% | 500 | 500 |
| 70% | 300 | 700 |
Step-by-step: reading a "% off" price tag
- Find the original listed price — usually the crossed-out or smaller number on the tag.
- Note the discount percentage advertised.
- Multiply the original price by the discount percentage, divide by 100 — that's your savings.
- Subtract the savings from the original price to get what you'll actually pay before tax.
- If two discounts are stacked (a storewide sale plus a coupon), apply them one after another, not by adding the percentages — see the FAQ below for why that matters.
Worked example: a two-stage sale
Suppose a jacket is originally priced at Rs. 4,000. A seasonal sale takes 25% off, bringing it to Rs. 3,000 (4,000 − 25% of 4,000 = 4,000 − 1,000). A loyalty coupon then takes an additional 15% off that already-reduced price: 15% of 3,000 is 450, so the final price is Rs. 2,550. The combined effect is a 36.25% discount off the original price — noticeably less than the 40% a quick mental addition of 25% and 15% might suggest, which is exactly the stacking effect covered above.
Discount vs. markup — a common point of confusion
A discount is calculated as a percentage of the original (higher) price. A markup, by contrast, is calculated as a percentage of the cost (lower) price, added on top to reach a selling price. Because the two percentages are taken from different base numbers, a "50% markup" and a "50% discount" are not mirror images of each other — an item costing Rs. 100 with a 50% markup sells for Rs. 150, but that same Rs. 150 item with a 50% discount doesn't return to Rs. 100, it drops to Rs. 75. Keeping the base number in mind is the key to avoiding this kind of mismatch. Checking the math before you buy takes only a few seconds and occasionally catches a pricing error at the till, which is reason enough to make it a habit for larger purchases.
Discounts that stack: why order matters
When a storewide 20% sale is combined with a 10% coupon, the two discounts are almost never simply added to 30% off. Instead, each discount is usually applied one after the other: the 20% comes off first, and the 10% coupon is then applied to the already-reduced price. On a Rs. 1,000 item, 20% off brings it to Rs. 800, and a further 10% off that brings it to Rs. 720 — a combined discount of 28%, not 30%. Retailers rely on this distinction, and it's worth checking the final total rather than assuming stacked percentages simply add up.
Frequently asked questions
No — this is one of the most common pricing mistakes. Two discounts of 20% and 10% applied one after another do not equal a 30% discount. The second discount applies to the already-reduced price, so the combined effect is smaller: a Rs. 1,000 item at 20% off becomes Rs. 800, then 10% off that is Rs. 720 — an effective discount of 28%, not 30%.
Use the "find the original price" calculator on this page: enter the sale price and the discount percentage, and it divides the sale price by (1 minus the discount as a decimal) to reverse the calculation.
Percentage changes aren't symmetric because each one is calculated on a different base. A Rs. 100 item increased 50% becomes Rs. 150; that same Rs. 150 decreased 50% becomes Rs. 75 — the second percentage was calculated on the larger number, not the original.
No — it calculates the discount only. If tax applies after the discount, calculate the discounted price here first, then run that result through a tax calculator separately, since tax is usually applied to the post-discount price, not the original price.
A markdown is how much a price is reduced from its original selling price — what this calculator computes. Margin is a separate concept relating to profit versus cost, not the original versus discounted selling price — the two shouldn't be confused when pricing a sale.