Quick answer: Calculate savings from the normal comparable price, then subtract caps, fees and conditions to find the real discount.
The basic formula
Real saving equals the comparable normal delivered price minus the promotional delivered price. Real discount percentage equals that saving divided by the comparable normal price, multiplied by 100.
The comparable price should be a price at which the same item is genuinely available, with similar delivery and warranty. A manufacturer’s suggested price can exaggerate the discount when retailers rarely charge it.
Percentage with a cap
For 20% cashback capped at ₹200, multiply the eligible amount by 20% and then choose the smaller result. A ₹2,000 eligible order produces ₹400 mathematically, but the cap limits the benefit to ₹200. The effective rate is therefore 10% before fees.
Include every unavoidable cost
Delivery, platform fees, payment fees, compulsory add-ons and taxes can erase a headline saving. Compare the amount required to receive the product, not an isolated line item. If the competitor includes delivery or a better warranty, note that value as well.
Do not double-count
If cashback is based on the amount after a coupon, apply the coupon first and calculate cashback on the eligible remainder. Check whether the promotion explicitly permits stacking. Do not assume two codes work together.
Simple worksheet
- Normal comparable delivered price
- Checkout subtotal after coupon
- Unavoidable fees and delivery
- Eligible cashback after cap
- Value and restrictions of store credit
- Reliable final net cost