Discount

A discount is the record Stripe creates when a coupon is applied to a customer, subscription, or invoice. Where the coupon defines the rule (10% off, $5 off), the discount is the live application of that rule to a specific object, tracking when it started and when it expires.

How discounts work in Stripe

When you attach a coupon, Stripe creates a discount object on the target and automatically reduces the amount due on each affected invoice.

• A percentage discount takes a share off the subtotal, for example 20% off a $100 plan.
• An amount discount subtracts a fixed value, for example $10 off in the invoice's currency.
• The coupon's duration decides how long it lasts: once, repeating (a set number of months), or forever.

A discount applied to a subscription rides along automatically at each renewal until its duration runs out. Redeeming a customer-facing promotion code at checkout also results in a discount object behind the scenes.

Why discounts matter for revenue

Discounts change what a customer actually pays, so they change your recognized revenue and your MRR. A subscriber on a permanent 25% discount contributes 25% less MRR than the list price implies, and a repeating discount creates a scheduled MRR bump when it expires.

Because the effect is silent — the invoice just comes out lower — discounts are easy to lose track of across a customer base. Reporting on active discounts, their durations, and their expiry dates keeps your revenue numbers honest and helps you anticipate the month a wave of promotional pricing ends and MRR steps up.