Discount & Savings Calculator
Simple discount, reverse discount, successive discounts, markup & margin, and GST calculator
Calculation Mode
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Result
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Formulas
Simple: Sale Price = Original × (1 − D%/100)
Reverse: Original = Sale Price ÷ (1 − D%/100)
Successive: Effective % = D1 + D2 − D1×D2/100
Markup: SP = Cost × (1 + M%/100)
Margin %: (SP − Cost) ÷ SP × 100
What is a Discount Calculator?
A discount is a reduction on the marked price (MRP) offered by sellers during sales, festive seasons, or as promotional offers. The discount percentage tells you how much you save relative to the original price. Understanding discounts helps compare deals, spot fake discount claims, and calculate actual savings.
This calculator handles multiple scenarios: standard percentage discount, reverse discount (finding MRP from sale price), successive discounts (e.g., 30% + 10% — NOT equal to 40%), markup vs. discount, and GST-inclusive pricing — covering all real-world shopping and business scenarios.
lightbulb Example Calculation
Scenario: Ms. Priya Agarwal is shopping at Amazon Great Indian Festival — an Apple iPhone case shows MRP ₹2,800, sale price ₹1,680. She sees another offer: 30% off then additional 10% coupon. Which is a better deal?
1Offer 1: Discount = (₹2,800 − ₹1,680) / ₹2,800 × 100 = 40% off → saves ₹1,120
2Offer 2 (successive 30% + 10%): After 30%: ₹2,800 × 0.70 = ₹1,960 | After 10%: ₹1,960 × 0.90 = ₹1,764
3Effective discount for Offer 2 = (₹2,800−₹1,764)/₹2,800 × 100 = 37% → saves ₹1,036
✓ Result: Offer 1 (flat 40%) saves ₹1,120 vs Offer 2 (successive 30%+10%) saves ₹1,036. Offer 1 is better by ₹84.
help_outlineHow to Use the Discount Calculator
- Select the Calculation Mode: Simple Discount (MRP + discount%), Reverse Discount (find MRP from sale price), Successive Discounts (two sequential discounts), Markup & Margin (cost price + markup%), or GST Calculator.
- For Simple Discount: Enter the original price (MRP) and the discount percentage. The calculator shows sale price, savings amount, and savings percentage.
- For Reverse Discount: Enter the final sale price and the discount % that was applied. This reveals the original MRP — useful when buying second-hand or verifying sale authenticity.
- For Successive Discounts: Enter original price and two discount percentages applied one after the other. The effective combined discount is always less than the sum of both.
- Results update live as you type — switch modes freely to compare pricing scenarios.
Benefits
- Verify whether "Great Sale" discounts are genuine or inflated from a manipulated MRP baseline
- Understand that successive 30% + 10% ≠ 40% — the effective discount is only 37%
- Find true MRP from sale price using reverse discount mode — useful for second-hand pricing
- Markup vs margin differ significantly — know both before setting retail prices or negotiating
- GST mode handles both exclusive (add GST to base) and inclusive (extract GST from total) pricing
Key Terms
- Discount %
- Reduction from MRP: Discount % = (MRP − Sale Price) / MRP × 100. A 20% discount on ₹1,000 gives a sale price of ₹800 (savings: ₹200).
- Reverse Discount
- Finding MRP when sale price and discount % are known: MRP = Sale Price ÷ (1 − Discount%/100). If sale price is ₹800 after 20% off, MRP = ₹800 ÷ 0.80 = ₹1,000.
- Successive Discount
- Two discounts applied sequentially. 30% + 10% is NOT 40%. Effective % = D1 + D2 − (D1 × D2)/100 = 30 + 10 − 3 = 37%. Final price = Original × (1−D1/100) × (1−D2/100).
- Markup
- Profit as a % of cost price: Markup % = (SP − Cost) / Cost × 100. A ₹500 item sold at ₹700 has 40% markup. Used in wholesale and B2B pricing.
- Gross Margin
- Profit as a % of selling price: Margin % = (SP − Cost) / SP × 100. Same example: (₹700−₹500)/₹700 = 28.6% margin. Always lower than markup % on the same numbers.
quizFrequently Asked Questions
Why is 30% + 10% successive discount not equal to 40%?
Because successive discounts are applied on the reduced price, not on the original. On ₹1,000: after 30% → ₹700. Then 10% on ₹700 → ₹630. Total discount = ₹370 on ₹1,000 = 37%, not 40%. The formula: Effective % = D1 + D2 − (D1 × D2/100). For 30% + 10%: 30 + 10 − 3 = 37%. Retailers often advertise "30% + 10% off" to make it sound like 40% — know the math to avoid being misled. The difference grows with larger discount percentages: 50% + 50% = only 75% effective, not 100%.
What is the difference between markup and margin — why do both matter?
Markup is profit as a % of cost; margin is profit as a % of selling price. On a ₹500 cost item sold at ₹700: Markup = (₹200/₹500) × 100 = 40%. Margin = (₹200/₹700) × 100 = 28.6%. They describe the same profit differently. Suppliers often quote markup (e.g., "I'm giving you 40% on cost") while retailers think in margin (e.g., "I need 30% margin to cover overheads"). Confusing them in negotiations leads to pricing errors. In accounting and PnL reports, gross margin (% of revenue) is the standard metric. In procurement, markup (% of cost) is used.
How do I find the original MRP if I only know the sale price and discount?
Use the reverse discount formula: MRP = Sale Price ÷ (1 − Discount%/100). Example: An item is on sale at ₹1,260 after a 30% discount. MRP = ₹1,260 ÷ 0.70 = ₹1,800. This is useful when buying second-hand items where the seller states a discount from "original price," or when verifying if an e-commerce site's MRP is genuine. Many discount platforms inflate the stated MRP to make the discount look larger — reverse discount calculation reveals the true pre-discount price.
How do online retailers use fake discounts — and how can I spot them?
Common tactics: (1) Inflating MRP — selling at ₹800 with MRP listed as ₹2,000 to show 60% off, when the real market price is ₹900. (2) Anchor pricing — displaying a "was ₹1,500, now ₹1,200" where ₹1,500 was never the real price. (3) Flash sale urgency + higher MRP — pressure to buy without comparing. How to spot: check the item's price history on tools like Keepa (Amazon) or PriceDekho. Compare across platforms. Verify MRP on the manufacturer's website. Use reverse discount: if the discounted price seems too good, calculate the implied MRP and check if it's realistic.
How does the GST calculator mode work — what is exclusive vs inclusive GST?
GST Exclusive: You know the base price (without GST) and want to calculate the total price including GST. Formula: Total = Base × (1 + GST%/100). For ₹1,000 base with 18% GST: Total = ₹1,180. GST Inclusive: You know the final price (already includes GST) and want to extract the base price and GST component. Formula: Base = Total / (1 + GST%/100). For ₹1,180 total with 18% GST: Base = ₹1,180/1.18 = ₹1,000, GST = ₹180. Invoices from registered GST businesses must show the base price and GST separately — exclusive mode is used for B2B invoicing; inclusive is used when verifying retail bills.