How Sequential Discounts and Coupons Work
Understand why two discounts do not simply add together and how to calculate the final price.
Sequential percentage discounts
Apply the first percentage to the original price. Apply the next percentage to the already reduced price; do not simply add the percentages.
Worked example
A ₹200 item discounted 20% costs ₹160. A further 10% discount reduces ₹160 to ₹144. Total savings are ₹56, equivalent to 28%, not 30%.
Fixed coupons
A fixed-value coupon is subtracted at the step defined by the offer. A coupon cannot reduce the final price below zero in the standard arithmetic model.
Order of operations
A fixed coupon applied before a percentage discount may produce a different result than one applied afterward. Read the retailer’s coupon terms and confirm which order your scenario uses.
Tax and shipping
A final discounted merchandise price is not necessarily the checkout price. Sales tax, shipping and exclusions may still apply.
Try your own numbers
Use the interactive calculator to compare scenarios. The results are estimates based on your chosen inputs.
Related calculators: Sales Tax Calculator · VAT Calculator
Educational information only. Check applicable rules, rates and product terms; this guide is not individualized financial, tax, employment or legal advice.