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Quick answer: stacked discounts multiply, they don't add. A 30% discount followed by an extra 20% off leaves you paying 0.70 × 0.80 = 0.56 of the original price — a total of 44% off, not 50%. On a ₹10,000 jacket that is ₹4,400 off, not ₹5,000, a ₹600 difference that checkout pages quietly keep.
When a store takes 30% off a ₹10,000 jacket, the price becomes ₹7,000. The "extra 20% off" is then applied to ₹7,000, not the original ₹10,000 — 20% of ₹7,000 is ₹1,400, giving ₹5,600. The marketing copy says "50% off" because both numbers appear on the tag, but the second percentage never sees the original price.
Every discount in the stack shrinks the base the next one works on. That's why the combined discount is always less than the sum of the parts.
| Stack | Compute | You pay | Real discount | "Advertised" |
|---|---|---|---|---|
| 30% + 20% | 0.70 × 0.80 = 0.56 | 56% | 44% | 50% |
| 50% + 20% | 0.50 × 0.80 = 0.40 | 40% | 60% | 70% |
| 25% + 15% + 10% | 0.75 × 0.85 × 0.90 = 0.574 | 57.4% | 42.6% | 50% |
| 70% + 30% | 0.30 × 0.70 = 0.21 | 21% | 79% | 100%! |
The last row is the classic clearance sign: "70% off, take an extra 30% — everything must go, that's 100% off!" It is 79%. Nobody is paying zero.
Convert each discount to its "keep" fraction and multiply: 30% off → keep 0.70; extra 20% → keep 0.80. 0.70 × 0.80 = 0.56, so keep 56% — pay 56% of the tag. One digit of precision is usually enough to catch a bad deal.
Coupon codes that apply after the sale price, loyalty points computed on the reduced price, and cashback calculated on the amount actually charged all compound the same multiplicative way — in your favour. The order matters for your wallet only in which base each percentage applies to; the multiplication itself is commutative, so the final price is the same whichever code is entered first. What matters is whether a discount is computed on the original tag or the running total.
Yes — the final price is identical (0.80 × 0.90 = 0.72 either way). Stores may apply them in a fixed order, but the result doesn't change.
Compute both keep-fractions: flat 40% → pay 0.60. Stacked: 0.75 × 0.80 = 0.60 — identical. Many "stacked" offers are engineered to look bigger than a flat cut that produces the same number.
Typically on the final discounted amount, but check your jurisdiction — some apply VAT to the pre-discount price. The difference is the tax rate times the discount amount.
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