Discount / Markup Calculator
Calculate a sale price from a discount, or a selling price from a markup.
Discount: the sale price is the original price minus a percentage of itself. Discount amount = Price × Rate. Sale price = Price − Discount.
Markup: the selling price is the cost plus a percentage of itself, used by retailers to set prices above what they paid. Markup amount = Cost × Rate. Selling price = Cost + Markup.
Worked examples:
- $50 item, 30% off → Discount = $50 × 0.30 = $15, Sale price = $35.
- $10 cost, 25% markup → Markup = $10 × 0.25 = $2.50, Selling price = $12.50.
How do I calculate a discount?
Multiply the original price by the discount rate (as a decimal), then subtract that from the original price. Example: $80 item at 25% off → $80 × 0.25 = $20 off, sale price $60.
How do I calculate markup?
Multiply the cost by the markup rate (as a decimal), then add that to the cost. Example: $20 cost at 50% markup → $20 × 0.50 = $10 markup, selling price $30.
Is markup the same as profit margin?
No. Markup is a percentage of cost (Markup % = Profit ÷ Cost), while margin is a percentage of the selling price (Margin % = Profit ÷ Selling Price). A 50% markup on a $20 cost gives a $30 selling price, which is only a 33% margin ($10 profit ÷ $30 selling price).
What is the difference between discount and markup?
Discount reduces a price for the buyer (used in retail sales and promotions). Markup increases a price above cost for the seller (used to set prices and generate profit). Mathematically they are inverse operations on the same original amount.