Business

How to Calculate a Discount Percentage (With Examples)

24 Aug 2026 · 3 min read

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Discount math looks simple until you need the version running in the opposite direction — not "what's 20% off ₹1,500" but "this dropped from ₹1,500 to ₹1,200, what percentage discount is that." They're different formulas.

Applying a known discount percentage

Discount amount = (Original price × Discount %) / 100
Final price = Original price − Discount amount

Example: a ₹1,500 item at 20% off → Discount amount = (1500 × 20) / 100 = ₹300. Final price = ₹1,200.

Finding the discount percentage from two prices

This is the one people actually search for most — you know the original and sale price, and want the percentage:

Discount % = [(Original price − Sale price) / Original price] × 100

Example: a ₹1,500 item now selling for ₹1,200 → Discount % = [(1500 − 1200) / 1500] × 100 = 20%.

Stacked discounts don't add up the way they look

"30% off, plus an extra 10%" is not 40% off. Each discount applies to the price after the previous one, so it compounds down: 30% off ₹1,000 gives ₹700, then 10% off ₹700 gives ₹630 — a combined 37% off, not 40%.

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Our Discount Calculator handles both directions — applying a known discount or working out the percentage between two prices — including stacked discounts, without the compounding mistake above.