Discount & Markup Calculator

Sale price = Original price x (1 - discount% / 100). Example: original price 200, 15% discount — sale price = 200 x 0.85 = 170. Savings = 30.

Discount% = (Original price - Sale price) / Original price x 100. Example: original 120, sale price 90 — discount = (120-90)/120 x 100 = 25%.

Original price = Sale price / (1 - discount% / 100). Example: item costs 85 after a 15% discount — original price = 85 / 0.85 = 100. Works for discounts below 100%.

Markup is calculated on cost: markup% = profit / cost x 100. Margin is calculated on selling price: margin% = profit / selling price x 100. Example: cost 100, price 125 — markup 25%, but margin only 20%. Margin is always lower than markup for the same profit amount.

Margin% = markup% / (100 + markup%) x 100. Example: markup 25% — margin = 25/125 x 100 = 20%. Reverse: markup% = margin% / (100 - margin%) x 100. Example: margin 20% — markup = 20/80 x 100 = 25%.

A percentage discount can be applied to either the net or gross price — the result is correct in both cases because the VAT rate does not change the percentage reduction. On invoices, discounts should be applied to the net price; VAT is then calculated on the net price minus the discount.

A discount is a permanent or individual price reduction (e.g. for loyal customers or bulk orders). A promotional price is typically a temporary reduction limited by time or stock availability. The calculator works for both scenarios.

Stacked discounts do not add arithmetically. Two discounts of 20% and 10% do not give 30% — they give 28%. Formula: final price = original price x (1 - r1/100) x (1 - r2/100). Example: 100 x 0.80 x 0.90 = 72 (effective discount 28%, not 30%).

Gross margin (%) = (Selling price - Cost) / Selling price x 100. It shows what percentage of revenue remains after covering the direct cost of goods. A higher margin means more room to cover overheads and generate profit. Margin is preferred in retail analysis; markup is common in wholesale pricing.

The discount and markup calculator is useful for shoppers (how much will I save?), retailers and wholesalers (how to price with a target margin?), accountants (what was the original price?), and economics or business students learning the difference between discounts, markups, and margins.