What's the difference between a simple and compound discount in the calculator?

A simple discount is a one-time reduction in price applied to the original amount. For example, a 10% simple discount on a product priced at ₹100 would be ₹10, so the discounted price is ₹90.

A compound discount is a discount applied multiple times to a base price, with each successive discount being calculated on the reduced price after the previous discount. This means that the total discount becomes progressively larger with each application.

Imagine a product originally priced at ₹100. You receive a 10% discount on the original price, bringing it down to ₹90. Now, if you get another 10% discount on the already discounted price of ₹90, the second discount will be calculated at ₹90, not the original ₹100. This results in a further reduction of ₹9, bringing the final price to ₹81.

In contrast to a simple discount, where a single percentage is applied to the original price, a compound discount provides a more significant reduction in price.