Pricing 3 min read· 6 Nov 2026

Discount Formula for Sellers: Set Sale Prices Without Losing Money

A “50% off” sale built from two discounts is really 46% off, and a sale price below break-even loses money on every order.

Discount Formula for Sellers — DrapifyApp free seller guide
Discount percentage
The discount percentage is the price reduction expressed as a share of the original price or MRP.

Discounts multiply. Costs don’t shrink with them.

01.The formulas

To findFormulaExample
Sale priceOriginal × (1 − discount ÷ 100)₹1,299 at 40% off = ₹779.40
Discount %(Original − sale) ÷ original × 100₹1,299 → ₹699 = 46.2% off
SavingOriginal − sale price₹1,299 − ₹699 = ₹600

The discount calculator does all three, including an extra coupon or bank offer on top.

02.Why stacked discounts don’t add up

A second discount applies to the already reduced price. 40% off ₹1,299 is ₹779.40; another 10% off that is ₹701.46. The total discount is 46%, not 50%.

FirstThenReal total discount
40%10%46%
30%20%44%
50%10%55%

03.Check the sale price against break-even

A sale is only worth running if the discounted price still covers product cost, packaging, marketplace fees and the cost of RTO and returns. Put the sale price into the Meesho, Amazon or Flipkart profit calculator and compare it with the break-even price it shows.

04.Planning a sale price step by step

  1. 1Find your break-even price in the platform profit calculator, with your real RTO and return rates.
  2. 2Decide the minimum profit per order you will accept during the sale.
  3. 3Use the calculator’s “price for target profit” box to get the lowest sale price that still meets it.
  4. 4Work backwards to the discount: (MRP − that price) ÷ MRP × 100.
  5. 5If the platform adds its own coupon on top, apply it as a stacked discount and check again.

05.Markup, margin and discount

Discounts are taken from the selling price, so they eat margin faster than many sellers expect. A product with a 40% margin loses all its profit at a 40% discount, before fees. See the profit margin calculator to convert between markup and margin.

Questions people ask

Multiply by 0.8. ₹500 at 20% off is ₹400.

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