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Discount Calculator

What you'll actually pay: single or stacked discounts, optional tax on top, and the honest combined percentage — 20% + 10% is 28%, not 30%.

In short

Find the final price after a discount, stack a second discount, add tax, and see exactly how much you save — with the true combined percentage made explicit.

By NaveenKumar T · Updated

Learn: How EMI Is Calculated: The Formula, a Worked Example and an Amortization Schedule

  • Final price & amount saved
  • Stacked second discount
  • Optional tax on the final price

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Reading sale math like a merchant

Retail pricing leans on the gap between perceived and actual discounts. 'Extra 10% off sale items' sounds additive but compounds multiplicatively; '70% + 20%' is 76% off, not 90%. The effective-percentage card translates marketing arithmetic into the single number that belongs in your decision.

The tax field completes the at-register prediction: discounts shrink the base, then tax grows it. Knowing the final figure before checkout is the whole point — and for invoice-side tax work in the other direction, the GST calculator handles inclusive/exclusive conversions.

In the US, a 'was' price used to compute a discount is itself regulated: the FTC's Guides Against Deceptive Pricing (16 CFR Part 233) set out when an advertised reference price is genuine and when the 'discount' is fabricated.

Worked example: ₹2,000 with single, stacked, and taxed discounts

The same ₹2,000 item under three common scenarios shows why 'effective percentage' is the number to trust, not the sum of the individual discounts:

₹2,000 original price
ScenarioDiscount(s)TaxFinal priceYou save
Single discount20% off—₹1,600.00₹400.00 (20% effective)
Stacked discount20% + 10% off—₹1,440.00₹560.00 (28% effective)
Stacked + tax20% + 10% off18% on the discounted price₹1,699.20₹560.00 before tax; ₹259.20 tax added back

Stacked discounts: advertised versus effective

"20% + 10% off" is never 30% off, and the gap grows with the size of the discounts. Each row below stacks two discounts the way this calculator does — sequentially, on the already-reduced price:

Advertised vs. effective combined discount
AdvertisedEffective
20% + 10%28%
25% + 25%43.75%
50% + 50%75%
70% + 20%76%

Sources

  1. 16 CFR Part 233 — Guides Against Deceptive Pricing (eCFR)

Help

Frequently asked questions

Everything you need to know about the Discount Calculator.

01Are two 25% discounts the same as 50% off?

Two 25% discounts come to 43.75% off, not 50%. The second discount applies to the already-reduced price: 2,000 less 25% is 1,500, and 25% off that is 1,125, a saving of 875 rather than 1,000. The effective-percentage card shows the true combined figure for any pair of discounts.

02How are stacked discounts calculated?

Sequentially, each on the already-reduced price: final = price × (1 − d₁/100) × (1 − d₂/100). That's why 20% + 10% yields a 28% effective discount — the second 10% applies to the smaller, post-first-discount amount, not the original price.

03Tax is charged on which amount — original or discounted?

Almost everywhere, on the discounted price the merchant actually receives — which is how this calculator applies it. If a store taxes the pre-discount price (rare, but it happens with some coupons), the difference is the tax rate applied to your discount amount; the receipt will show it.

04How do I find the original price from the sale price?

Divide the sale price by (1 minus the effective discount as a decimal). A sale price of 1,440 after a 28% effective discount gives an original price of 1,440 ÷ 0.72 = 2,000. For a single discount the same division works directly; for stacked discounts, use the effective percentage this calculator shows, not either discount alone.

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