Finance

How to Calculate a Discount and Final Sale Price

Aug 18, 2026

Working out how much you'll actually pay after a discount is simple in principle, but a couple of common mistakes — especially with multiple discounts — trip people up regularly.

The Basic Discount Formula

Discount amount = Original price × discount% / 100
Final price = Original price − discount amount

A ₹2,000 item at 25% off: discount amount = 2,000 × 25 / 100 = ₹500, so the final price is ₹1,500.

Working Backward From the Sale Price

If you only know the discounted price and the discount percentage, and want the original price, divide instead of subtracting: Original price = Final price / (1 − discount% / 100). A ₹1,500 sale price at 25% off means the original price was 1,500 / 0.75 = ₹2,000.

The Stacked-Discount Trap

Two discounts don't add up the way they look. "20% off, plus an extra 10% off" is not 30% off — the second discount applies to the already-reduced price, not the original one. On a ₹1,000 item: 20% off brings it to ₹800, then 10% off ₹800 is ₹80, for a final price of ₹720 — a combined discount of 28%, not 30%.

Discount vs Markup: Don't Confuse the Two

A price reduced by 20% and then increased by 20% does not return to the original price. ₹1,000 reduced by 20% is ₹800; increasing ₹800 by 20% gives ₹960, not ₹1,000 — because the second percentage is calculated on a smaller base.

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