You see an iPhone listed for ₹60,000. But wait! There is a ₹5,000 Bank Cashback, a 2% Credit Card Reward, and a ₹2,000 Coupon. So, what are you actually paying?
Retailers love to confuse us with multiple layers of discounts. Our Cashback Calculator helps you peel back the layers and find the "Effective Price"—the money that actually leaves your pocket.
Savings Guide:
1. What is "Effective Price"?
Effective Price is the final cost of an item after subtracting all monetary benefits you receive later.
Example: Smart Watch
Listed Price: ₹5,000
Cashback: - ₹500
Effective Price: ₹4,500
2. Instant Discount vs Cashback
They look the same, but they are financially different.
| Feature | Instant Discount | Cashback |
|---|---|---|
| When do you save? | Immediately (at checkout) | Later (90 days or next bill) |
| Wallet Impact | You pay LESS upfront. | You pay FULL upfront, get money back later. |
| Verdict | Better (Cash in hand is king). | Good, but requires patience. |
3. Credit Card Rewards Math
Many premium cards offer "Reward Points" (RP) instead of cash. To calculate the real value, you need to know the Redemption Rate.
Reward Points
e.g., 5X Points on every ₹100 spent.Conversion
1 Point = ₹0.25 (Average Card) vs ₹1.00 (Premium Card).Formula: Total Points × Value per Point = Cashback Amount.
4. How to use our Cashback Calculator?
Use this tool before hitting the "Buy Now" button:
- Original Price: Enter the MRP or Listed Price.
- Discount %: Coupon or Instant Discount.
- Cashback Amount: Bank offer or Wallet cashback.
The tool will tell you the Final Effective Price and total Savings %.