Discount Calculator
Sale price after stacked discounts, with GST either way.
Price breakdown
| Step | Amount |
|---|---|
| MRP | ₹2,000 |
| Less 25% discount | -₹500 |
| Less extra 10% off sale price | -₹150 |
| Price after discounts | ₹1,350 |
| GST @ 18% (already included) | ₹206 |
| You pay | ₹1,350 |
A discount calculator turns a sale tag into the amount you actually pay. Enter the MRP, the headline discount and any 'extra % off', and it shows the final price, the rupees you save, the effective discount on MRP, and the GST that is either added on top or already sitting inside the price.
The point of the calculator is the stacking. Retailers advertise '25% off + extra 10% off' because the extra discount is taken on the already-reduced price, not on MRP — so the combined saving is 32.5%, never 35%. Seeing the effective percentage lets you compare two offers honestly before you reach the billing counter.
How stacked discounts and GST are calculated
First discount: price = MRP × (1 − discount ÷ 100). Extra offer: that price × (1 − extra ÷ 100). Effective discount = (MRP − final price) ÷ MRP × 100. On a ₹2,000 MRP with 25% off, you pay ₹1,500 and save ₹500. Add 'extra 10% off' and the 10% comes off ₹1,500, not ₹2,000: ₹1,500 × 0.90 = ₹1,350. You save ₹650 in total, an effective 32.5% off — 2.5 percentage points less than simply adding 25 and 10.
GST depends on how the price is quoted. Retail MRP in India is legally inclusive of all taxes, so at 18% the ₹1,350 you pay already contains ₹205.93 of GST: 1,350 − 1,350 ÷ 1.18. Where GST is charged on top — most services, B2B quotes and many online listings shown 'exclusive of taxes' — it is added to the discounted price instead, so ₹1,000 with no discount at 18% bills ₹1,180. Switch the toggle to match the way your bill is written.
How to use this calculator
- Set the MRP or listed price from the tag.
- Enter the headline discount percentage advertised on the offer.
- Add the 'extra % off' only if the store applies it on the already-discounted price — leave it at 0 otherwise.
- Set the GST rate for the product category, then choose whether GST is already in the MRP or charged on top.
- Compare the effective discount against a rival offer, and open the price breakdown to see each step of the bill.
Reading Indian sale tags and MRP rules
Under the Legal Metrology (Packaged Commodities) Rules, MRP is the maximum price at which a packaged item may be sold and it must be inclusive of all taxes — so a shop cannot add GST on top of MRP, and 'MRP + taxes' on a bill is a violation you can refuse to pay. Dual MRPs for the same pack are also not allowed, other than the separately permitted pricing at airports and in hotels for institutional supply. Always check that the discount is computed on the printed MRP and not on an inflated 'list price'.
During end-of-season sales, look past the biggest number on the poster. '50% + extra 20%' is an effective 60% off, not 70%. Bank-card offers usually apply after the discounts as a flat cashback capped at a rupee amount, so a '10% instant discount up to ₹1,000' on a ₹1,350 bill is worth ₹135, not ₹1,000. Coupons on marketplaces stack in a fixed order — item discount, then coupon, then bank offer — and GST is charged on the discounted taxable value, which is why the invoice tax line falls along with the price.
Frequently asked questions
How do I calculate the price after a discount?
Multiply the MRP by (1 − discount ÷ 100). A ₹2,000 item at 25% off costs ₹1,500 and saves you ₹500. The calculator does this instantly and also shows the saving as a share of MRP.
How does '25% off + extra 10% off' actually work?
The extra 10% is taken on the already-discounted price, so ₹2,000 becomes ₹1,500 and then ₹1,350 — an effective 32.5% off, not 35%. Stacked offers always give less than the sum of the two percentages.
Can a shop charge GST on top of MRP?
No. MRP is defined by the Legal Metrology (Packaged Commodities) Rules as the maximum price inclusive of all taxes, so GST is already inside it. If a bill adds GST above MRP you can refuse to pay the extra and report the seller to the state legal metrology department.
What is the effective discount percentage?
It is the total saving expressed as a single percentage of MRP: (MRP − final price) ÷ MRP × 100. Use it to compare two offers written in different ways, such as a flat 30% off against 25% plus an extra 10%.
How is GST calculated on a discounted item?
GST applies to the price actually charged, so a discount shown on the invoice reduces the taxable value and the tax with it. Only discounts agreed before or at the time of supply and recorded on the invoice qualify; post-sale cashback given later does not reduce the GST already charged.
Do bank card offers add to the discount?
Yes, but usually as a separate instant discount or cashback applied on the final payable amount and capped at a maximum rupee value. Enter the store discounts here first, then subtract the capped bank benefit from the final price shown.
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Disclaimer: results are estimates based on the inputs and published rules/rates, for information only — not investment, tax or legal advice. Verify important decisions with a qualified professional. See our full disclaimer.