Discount Calculator
Work out the final price after any percentage off, see what the discount actually does to your margin, and get the truth about stacked discounts — before you run the sale, not after.
Directional estimate for pricing decisions. Real margin is contribution margin — gross margin minus shipping, payment fees and returns — so a discount that looks fine on gross margin can still be unprofitable.
What a discount really costs you
A 15% off sale on a product with 35% gross margin cuts margin to 20% of price. The same sale on a product with 12% margin sends the order below zero before a single rupee of ads or shipping. That is why the discount decision belongs to the person who owns the contribution margin — not the person who owns the promo calendar.
The test for any discount: it must move willingness to buy or basket size more than it costs in margin. Threshold offers (free shipping at ₹999), bundle anchors and quantity breaks usually do. A flat site-wide % off rarely pays for itself — it just prices the product down for people who would have bought anyway.
| Gross margin | 15% discount | 25% discount | 40% discount |
|---|---|---|---|
| 40% | → 25% | → 15% | → 0% (broke even) |
| 30% | → 15% | → 5% | → −10% (loses money) |
| 20% | → 5% | → −5% | → −20% |
Margin after discount ≈ gross margin − discount percentage. If the result is below your contribution margin (margin after shipping and fees), the discount is destroying profit per order.
Common questions
How do I calculate the final price after a discount?
Multiply the original price by (1 − discount/100). ₹2,000 at 30% off → ₹2,000 × 0.70 = ₹1,400. Savings = ₹600. Reverse it: to find the discount percentage, divide savings by the original price and multiply by 100.
Do two discounts of 30% and 20% equal 50% off?
No. Discounts apply one after another: ₹1,000 − 30% = ₹700, then − 20% = ₹560. Effective discount is 44%, not 50%. The larger the stack, the bigger the gap between advertised and real savings.
How much margin does a discount eat?
Point for point on the margin side: a 15% discount on a 35% margin product leaves 20% of price as margin. If you also pay 8–10% in shipping, payment fees and returns, that 20% is closer to 10–12% — and a steeper discount can make every order unprofitable.
What is a good discount to run for D2C?
One that is justified by a measurable behaviour change: threshold free-shipping offers (which lift AOV), bundle discounts (which lift units per order), or end-of-season inventory where holding costs exceed the discount. Site-wide % off without a target is usually just margin given away.
Run Promos On Math, Not Mood
Get a margin-model review of your promo calendar — which discounts pay for themselves, which ones just cost you revenue.