Discount & Promotion Calculator
Calculate savings for 6 discount mechanics with Saudi 15% VAT
Discount type
VAT handling
Discount
20% Effective off
Price after discount
VAT (15%)
Final price
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How does it work?
A discount changes the customer's effective price; the right calculation depends on the mechanic and whether the original price includes VAT. This tool normalises six different mechanics so the comparison — and the savings figure you advertise — stays apples-to-apples.
Effective discount per mechanic
Each mechanic maps to an effective percentage off the original:
Percentage: rate% | Fixed: amount ÷ price | BOGO (Buy N Get M): M ÷ (N + M) | Bundle: (Standalone − Bundle) ÷ Standalone | Volume: highest tier hit | Cashback: rate% returned (price still paid at checkout)
Worked example
A 100 SAR item with a 'Buy 2 Get 1 Free' promo, VAT-exclusive:
- Cart of 3 units at 100 SAR each = 300 SAR standalone
- BOGO effective rate = 1 ÷ (2 + 1) = 33.33%
- Discount = 300 × 33.33% = 100 SAR (one free unit)
- Price after discount = 200 SAR (net)
- Plus 15% VAT = 30 SAR
- Final price the customer pays = 230 SAR
Practical tips
- Inclusive VAT is the legal default on Saudi B2C stickers — discount the gross price, then back-derive VAT.
- Exclusive VAT fits B2B quotes — discount the net, add VAT after.
- Cashback isn't a discount at checkout — clarify this in the offer copy to avoid confusion.
- Volume tiers reward only the highest threshold the customer hits — for marginal volume rewards use bundle or graduated commission instead.
- BOGO works on the cart total — communicate it as 'save 33%' for clarity if the math is unfamiliar.
Frequently Asked Questions
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