Discount calculator
Work out what you pay after a discount, what percentage off a sale actually is, or what to charge with a markup. Shows margin too.
Three questions, one tool
Discounts get asked about from three directions, and they are the same arithmetic pointed different ways.
- What do I pay? You know the price and the percentage off. £80 with 30% off is £56.
- What percentage off is this? You know both prices and want to know if the "SALE" sticker is telling the truth. £80 down to £56 is 30% off.
- What should I charge? You know your cost and the markup you want. That is the seller's side of the same sum.
Worked example. A £80 coat at 30% off: 30% of £80 is £24, so you pay £56 and save £24.
Markup and margin are not the same thing
This is the one that costs people money, so it is worth being blunt about.
Markup is measured against what the item cost you. Margin is measured against what you sold it for. Same transaction, different denominator, very different number.
The trap. Buy for £50, add 100% markup, sell for £100. Your profit is £50. But that is a 50% margin, not 100%, because £50 profit out of a £100 sale price is half. A 100% markup is always a 50% margin. Price a job on "I need 40% margin" by adding 40% markup and you will come up short every time.
The calculator shows both, so you can see which one you actually mean before you quote.
Stacked discounts do not add up
"20% off, then an extra 10% off at the till" is not 30% off. The second discount comes off the already-reduced price, so £100 becomes £80, then £72. That is 28% off, not 30%. The gap widens the bigger the discounts get.
To check a stacked deal, run it twice: take the first discount, then put the answer back in as the original price for the second.
Working discounts out in your head
Percentages are easier than they look if you take them apart. 10% is just the decimal point moved one place: 10% of £80 is £8. Everything else is built from that. 30% is three of those (£24). 5% is half of one (£4). 15% is 10% plus 5% (£12). 25% is a quarter, so halve it and halve it again.
Common questions
How do I work out a percentage discount?
Multiply the price by the percentage, divide by 100, and take that off. 30% of £80 is £24, so the sale price is £56. Or put the numbers in above.
How do I work out what percentage off a sale is?
Take the new price off the old, divide by the old price, and multiply by 100. £80 down to £56 is a £24 saving, and £24 divided by £80 is 30%. Use the "what % off is this" option above.
What is the difference between markup and margin?
Markup is measured against your cost; margin against your selling price. Buy at £50 and sell at £100 and that is a 100% markup but only a 50% margin. Adding 40% markup when you need a 40% margin will leave you short.
Is 20% off then 10% off the same as 30% off?
No. The second discount comes off the reduced price, so £100 goes to £80 then £72, which is 28% off rather than 30%. Stacked discounts always come to less than the sum of their parts.
How do I work out 30% in my head?
Find 10% by moving the decimal point one place, then treble it. 10% of £80 is £8, so 30% is £24. Build the awkward ones the same way: 15% is 10% plus half of it.