In this article
You see a jacket marked 50 percent off. At the till, an extra 20 percent comes off. It feels like 70 percent. It is 60. The second discount is taken from the already reduced price, so it is worth less than it sounds.
What actually happens to ₹100
Take an item priced at ₹100. The first discount of 50 percent removes ₹50, leaving ₹50. Now the second discount of 20 percent is taken from ₹50, not from ₹100. That is ₹10. You pay ₹40.
- Gone with the first 50% off₹50
- Gone with the extra 20% off₹10
- What you pay₹40
20 percent of ₹50 is ₹10, not ₹20. The second discount is applied to a smaller number.
The shortcut
| First | Then | What it feels like | Real discount |
|---|---|---|---|
| 20% | 10% | 30% | 28% |
| 30% | 20% | 50% | 44% |
| 40% | 30% | 70% | 58% |
| 50% | 20% | 70% | 60% |
| 50% | 50% | 100% | 75% |
The bigger the discounts, the bigger the gap. Two 50 percent discounts are never a free item.
Each extra step adds half as much as it seems, because only half of the price is left to discount.
Order does not matter, GST does
A 20 percent discount followed by a 50 percent one gives exactly the same final price as 50 then 20, because 0.8 × 0.5 equals 0.5 × 0.8. What can change your bill is when tax is added. In India, GST on the sale price is calculated on the price after the discount.
- ₹2,000 less ₹1,400 = ₹600
- ₹600 plus 18% GST = ₹708
- ₹2,000 × 0.5 × 0.8 = ₹800
- ₹800 plus 18% GST = ₹944
Both bills include GST. The difference is ₹236, from a discount that was 10 points smaller than it sounded. See how GST is added or removed.
How to spot a misleading sale
- “Up to 70% off” means the best item is 70 percent off. Most are not.
- “Extra 20% on already reduced” is multiplied, not added.
- Original prices that were never charged. A 60 percent discount from an inflated price is not a bargain. Check the price history.
- Discounts that remove a feature. A cheaper model that does less is not the same product.
The same logic explains why a 50 percent loss needs a 100 percent gain to recover, as in up 50 percent, down 50 percent. Percentages always apply to whatever is left.
Questions people ask
How do I calculate two discounts together?
Multiply what is left after each. For 50 percent and 20 percent off, 0.5 × 0.8 = 0.4, so you pay 40 percent of the price, which is a 60 percent total discount.
Is 50% off plus 20% off the same as 70% off?
No. It is 60 percent off. The second discount is taken from the already reduced price.
Does the order of the discounts matter?
No. Multiplication gives the same result in either order. 20 percent then 50 percent equals 50 percent then 20 percent.
Is GST charged before or after a discount?
On the price after the discount. The taxable value is the discounted price, and GST is added on top of that.
How do I find the discount percentage from two prices?
Subtract the sale price from the original, divide by the original and multiply by 100. A price falling from ₹800 to ₹600 is (200 ÷ 800) × 100 = 25 percent off.