Stop struggling with mental math during Black Friday or Diwali sales. Our Discount Calculator instantly calculates precisely how much an item will cost after a percentage markdown, and exactly how much hard cash you are saving.
How to use the Discount Calculator?
1. Original Price: Enter the sticker price or MRP of the item you want to buy.
2. Discount Percentage: Slide the bar to the advertised discount (e.g., 20% off or "Flat 50%").
3. Sales Tax (Optional): If you are buying electronics or shopping internationally where tax is added at the checkout counter, use the tax slider to factor it into your final payable amount.
How is the Final Price Calculated?
The math is heavily standardized globally:
- Step 1: Find the sheer monetary discount:
Original Price * (Discount % / 100) - Step 2: Find the Discounted Price:
Original Price - Discount Amount - Step 3: If applicable, calculate Tax on the Discounted Price:
Discounted Price * (Tax % / 100) - Step 4: Find Final Payable Price:
Discounted Price + Tax Amount
Frequently Asked Questions
By universal accounting standards, taxes (like VAT or GST) must be calculated exactly on the "Transaction Value". Therefore, taxes are always applied after the discount has been completely deducted.
This is a classic retail trap called a "Successive Discount". It does NOT mean 90% off. It means the store cuts 50% off the original price, and then takes 40% off that new, smaller price. (E.g. ₹100 becomes ₹50, then 40% of ₹50 is ₹20. The final price is ₹30, which equates to a total 70% discount, not 90%).
In India, MRP stands for Maximum Retail Price. By law, the MRP already includes all taxes (Inclusive). If a store offers a discount on MRP, you should set the Sales Tax slider to 0% because no additional tax can be slapped on top of MRP.
If an item's final price is ₹80 after a 20% discount, you divide the final price by the remaining percentage (which is 80%, or 0.8) to find the original price. (80 / 0.8 = ₹100).
Yes, in B2B accounting. A Trade discount is given on the catalogue price at the time of sale. A Cash discount is an extra incentive given later strictly if the buyer repays the invoice within a specific timeframe (e.g. 2/10 Net 30).