Work out a sale price, the true saving from stacked discounts, the % off between two prices, or a selling price from cost and markup.
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How to work out a discount
Sale price = original price × (1 − discount ÷ 100). For example, 25% off £80 is £80 × 0.75 = £60.
% off = (original − sale) ÷ original × 100. From £120 to £90 is 25% off.
Double discounts don’t add up
| Offer | What you actually get |
|---|---|
| 20% off, then an extra 10% | 28% off, not 30% |
| 30% off, then an extra 20% | 44% off, not 50% |
| 50% off, then an extra 50% | 75% off, not 100% |
Markup vs margin
| Markup (on cost) | Margin (on price) |
|---|---|
| 25% | 20% |
| 50% | 33.3% |
| 100% | 50% |
| 150% | 60% |
| 200% | 66.7% |
Retailers usually think in margin; suppliers often quote markup. Mixing them up can wipe out your profit.
Frequently asked questions
How do I calculate 20% off?
Multiply the price by 0.8. For example, 20% off £50 is £40.
How do I work out the percentage discount?
Subtract the sale price from the original, divide by the original and multiply by 100.
What's the difference between markup and margin?
Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price.
Do two discounts add together?
No. The second discount applies to the already reduced price, so the total is less than the sum.
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