How to Calculate Discount Percentage (Formula & Examples)
Discount % = (MRP − sale price) ÷ MRP × 100. Worked examples, why 50% + 20% off is 60% not 70%, buy 1 get 1 as a %, and the Excel formula.
To calculate a discount percentage, subtract the sale price from the original price (MRP), divide by the original price, and multiply by 100:
Discount % = (original price − sale price) ÷ original price × 100
For example, a shirt with an MRP of ₹2,499 selling for ₹1,749 has a discount of ₹750, and 750 ÷ 2,499 × 100 = about 30%. To go the other way, from a % off to the price you pay, use the discount calculator, which also handles "extra % off" offers.
Discount kaise nikale: the simple steps
- Discount amount = MRP − sale price
- Discount % = discount amount ÷ MRP × 100
- Sale price from a % = MRP × (1 − discount % ÷ 100)
In short: jitni chhoot mili, use MRP se divide karo aur 100 se guna karo. Always divide by the original price, never by the sale price.
Worked examples
Finding the discount percentage
| MRP | Sale price | Discount | Discount % |
|---|---|---|---|
| ₹2,499 | ₹1,749 | ₹750 | 30.0% |
| ₹1,200 | ₹900 | ₹300 | 25% |
| ₹45,999 | ₹39,999 | ₹6,000 | 13.0% |
| ₹599 | ₹449 | ₹150 | 25.0% |
Finding the sale price from a discount
A ₹3,200 pair of shoes at 35% off:
- Discount = 3,200 × 35 ÷ 100 = ₹1,120
- You pay 3,200 − 1,120 = ₹2,080
Or in one step: 3,200 × 0.65 = ₹2,080.
Finding the original price from the sale price
If you paid ₹1,600 after 20% off, the original price was 1,600 ÷ 0.80 = ₹2,000. Do not add 20% back to ₹1,600; that gives ₹1,920, which is wrong. The percentage calculator helps with this kind of reverse sum.
Successive discounts: 50% + 20% is not 70%
Offers like "flat 50% off + extra 20% off" apply the second discount to the already reduced price.
On a ₹1,000 item:
- After 50% off: ₹500
- Extra 20% off ₹500: ₹100 off
- You pay ₹400, a total discount of 60%, not 70%.
The general formula for two discounts a% and b% is:
Total discount % = a + b − (a × b ÷ 100)
| Offer | Not this | Actual total discount |
|---|---|---|
| 50% + 20% | 70% | 60% |
| 25% + 10% | 35% | 32.5% |
| 40% + 10% | 50% | 46% |
| 30% + 30% | 60% | 51% |
The order does not matter: 20% then 50% gives the same ₹400. Enter the first discount and the extra discount in the discount calculator and it shows the effective discount.
For three discounts, multiply the remaining fractions. 50% + 20% + 10% leaves 0.5 × 0.8 × 0.9 = 0.36 of the price, a 64% total discount.
Buy 1 get 1 free as a percentage
When all items have the same price:
Effective discount % = free items ÷ total items × 100
| Offer | Items you get | Free | Discount on the lot |
|---|---|---|---|
| Buy 1 get 1 free | 2 | 1 | 50% |
| Buy 2 get 1 free | 3 | 1 | 33.3% |
| Buy 3 get 1 free | 4 | 1 | 25% |
| Buy 3 get 2 free | 5 | 2 | 40% |
When prices differ, stores usually make the cheapest item free. Then the real discount is the free item's price divided by the total price of everything you take. Buying a ₹1,200 and an ₹800 shirt on "buy 1 get 1" saves ₹800 of ₹2,000, which is 40%, not 50%.
And a discount is only a saving if you wanted the extra item. "Buy 2 get 1" on something you need only one of is a higher spend, not a saving.
Discount and GST: which comes first?
In Indian retail, the MRP already includes all taxes, so a discount on MRP gives you the final price directly; GST is inside it.
For business quotes where GST is added on top, apply the discount first and then add GST on the reduced value:
- List price ₹10,000, 10% discount: ₹9,000
- GST at 18% on ₹9,000: ₹1,620
- Total: ₹10,620
A discount shown on the invoice at the time of sale generally reduces the value GST is charged on. The GST calculator adds or removes GST at common rates.
Discount formula in Excel
With the original price in A2 and the sale price in B2:
- Discount %:
=(A2-B2)/A2, formatted as a percentage - Discount amount:
=A2-B2
With the original price in A2 and the discount in C2 typed as 25%:
- Sale price:
=A2*(1-C2) - Original price from a sale price in B2:
=B2/(1-C2)
Two successive discounts in C2 and D2:
- Final price:
=A2*(1-C2)*(1-D2) - Effective discount:
=1-(1-C2)*(1-D2)
Do not multiply by 100 if the cell is formatted as a percentage. These formulas also work in Google Sheets.
Common mistakes
- Dividing by the sale price. Always divide by the original price.
- Adding successive discounts. 50% + 20% is 60%, not 70%.
- Adding the % back to find the original price. Divide by (1 − discount) instead.
- Trusting an inflated MRP. A big percentage off an unrealistic MRP is not a big saving. Compare the final price with other stores.
- Forgetting delivery or convenience fees, which reduce the real discount.
- Counting "buy X get Y" as a discount on items you did not need.
For changes that are not discounts, such as price rises or a salary hike, our guide on percentage increase and decrease uses the same idea.
Questions
How do I calculate discount percentage from MRP and sale price?
Subtract the sale price from the MRP, divide by the MRP and multiply by 100. For MRP ₹2,499 and sale price ₹1,749, the discount is 750 ÷ 2,499 × 100 = about 30%.
Is 50% + 20% off the same as 70% off?
No. The extra 20% is taken off the already reduced price. ₹1,000 becomes ₹500, then ₹400, so the total discount is 60%.
What percentage discount is buy 1 get 1 free?
If both items cost the same, buy 1 get 1 free is a 50% discount on each item. Buy 2 get 1 free is about 33.3%, and buy 3 get 2 free is 40%.
What is the discount formula in Excel?
With the original price in A2 and the sale price in B2, use =(A2-B2)/A2 and format the cell as a percentage. For the sale price from a discount in C2, use =A2*(1-C2).