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Calculate final prices after single or successive discounts, total savings, and applicable taxes instantly.
For successive discounts (e.g., 50% + 20% off).
Tax is calculated on the discounted price.
Final Price
Including 18% Tax
Total Savings
Amount saved from original price
Effective Discount
True discount percentage
| Step | Amount Applied | Running Balance |
|---|---|---|
| Original Price | - | ₹5,000 |
| Discount 1 (20%) | -₹1,000 | ₹4,000 |
| Tax (18%) | +₹720 | ₹4,720 |
| Final Price | - | ₹4,720 |
Whether you are shopping during a festive sale or calculating B2B invoice totals, understanding how discounts and taxes are applied is essential to knowing exactly how much you're paying.
Retailers often advertise sales like "50% + 20% OFF". This does not mean you get a 70% discount.
Instead, the 50% discount is applied first. Then, the 20% discount is applied to the new, already discounted price. For example, on a ₹1000 item:
1. 50% off ₹1000 = ₹500
2. 20% off ₹500 = ₹100
Final Price = ₹400 (which is an effective discount of 60%, not 70%).
In India, Goods and Services Tax (GST) is always applied on the transaction value—which is the price after the discount has been deducted.
If an item costs ₹1000 and has a 10% discount, the price becomes ₹900. If GST is 18%, the tax is calculated as 18% of ₹900 (₹162), making the final price ₹1062.
A successive discount (like '50% + 20% off') means the second discount is applied to the price AFTER the first discount has been deducted. It does NOT mean a flat 70% off. For example, on ₹100, 50% off makes it ₹50. An additional 20% off on ₹50 makes the final price ₹40 (an effective discount of 60%, not 70%).
The effective discount rate is the total savings divided by the original price, multiplied by 100. It shows the true single discount percentage equivalent to multiple successive discounts.
In most retail and business scenarios (like GST in India), tax is applied on the discounted price, not the original MRP. Our calculator follows this standard practice.
Yes, you can use this to calculate trade discounts and cash discounts on invoices, and then apply the applicable GST rate to find the final invoice value.