Discount & Markup Calculator
It calculates sale price and savings from a discount, and works the other way from cost to markup, selling price and gross margin.
You pay
$81.89
Subtotal
$81.89
Tax added
$0.00
You save
$48.10
Effective off
37.0%
Original
$129.99
Final total
$81.89
What it calculates
It calculates sale price and savings from a discount, and works the other way from cost to markup, selling price and gross margin.
Why it matters
Markup and margin are routinely confused, and the gap between them decides whether a product is profitable.
Who it's for
Shoppers checking a deal, and retailers or freelancers setting prices.
Formula
- C
- Cost price
- S
- Selling price
- d
- Discount rate
Worked example
$80 item at 35% off
- 1Savings = 80 × 0.35 = 28
- 2Sale price = 80 − 28
$52, saving $28
How the discount & markup calculator works
Sale price = original × (1 − d). Markup = (S − C) ÷ C. Margin = (S − C) ÷ S. A 50% markup is only a 33% margin, which is where pricing mistakes usually begin.
Stacked discounts multiply rather than add: 30% off then a further 10% off is 37% off in total, not 40%. The effective discount line shows the real saving.
Markup is measured against cost, margin against selling price — a 65% markup is a 39% margin, which is why the two are shown side by side.
Common mistakes
- Treating markup and margin as the same figure.
- Stacking discounts additively — 20% then 10% is 28% off, not 30%.
- Discounting from an inflated 'original' price.
Tips and best practice
- To hit a target margin, price at C ÷ (1 − margin).
- Check unit price rather than headline discount when comparing sizes.
Frequently asked questions
How do I calculate a discount?
Multiply the original price by the discount rate to get savings, then subtract it from the original price.
What is the difference between markup and margin?
Markup is profit over cost; margin is profit over selling price. Margin is always the smaller number.
How do stacked discounts work?
They multiply. 20% then 10% leaves 0.8 × 0.9 = 0.72 of the original price, a 28% total discount.
What markup do I need for a target margin?
Markup = margin ÷ (1 − margin). For a 40% margin you need a 66.7% markup; for a 50% margin you need to double the cost.
How do I work out the original price from a sale price?
Divide the sale price by (1 − discount). An item at $52 after 35% off was $52 ÷ 0.65 = $80 originally.
Do stacked discounts add together?
No, they multiply. 20% then 10% off leaves 0.8 × 0.9 = 72% of the original price, which is a 28% total discount rather than 30%.
Related calculators
Further reading
Methodology & trust
- Formula source
- Standard retail pricing arithmetic.
- Last updated
- 2026-07-28
- Privacy
- Every calculation runs in your browser. No inputs are sent to a server or stored.
- Accessibility
- Keyboard navigable, labeled inputs and WCAG AA color contrast.