Discount calculator
Check the final price after any offer, and what it does to your margin before you announce it.
Successive discounts are not added
"10% + 5% off" means 10% off the price, then 5% off the reduced price. On ₹1,000 that is ₹900, then ₹855: an effective discount of 14.5%, not 15%.
Effective discount = 1 − (1 − d1) × (1 − d2)
What a discount costs a seller
A discount comes straight out of profit. On an item with cost ₹800 and price ₹1,000, profit is ₹200. A 10% discount cuts the price to ₹900 and profit to ₹100: half the profit is gone, and you need twice as many units to earn the same. Our guide on pricing and margins has a full table.
Questions about discounts
Is GST charged before or after discount?
A discount shown on the invoice at the time of sale reduces the taxable value, so GST is charged on the discounted price.
Can I sell above MRP if I give a discount later?
No. MRP is the maximum retail price including all taxes. You can sell below MRP but not above it.
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