Discounts and Markups Explained

Whether you're applying a percent off (discount) or adding a percent on cost (markup), the math is straightforward.

Discount: percent off

Sale price = Original price × (1 − discount% ÷ 100). Amount saved = Original − Sale price. Example: 20% off $100 → sale price = 100 × 0.80 = $80; you save $20.

📊 Use our Discount and Markup Calculator for any currency.

Markup: percent on cost

Used when you know the cost and want to set a selling price. Selling price = Cost × (1 + markup% ÷ 100). Markup amount = Selling price − Cost. Example: 50% markup on $40 cost → selling price = 40 × 1.50 = $60, markup = $20.

When to use each

Discount — Sales, coupons, clearance. "30% off" means you pay 70% of the original.
Markup — Retail and wholesale. A store adds a margin on top of cost to get the price they sell at.

Related tools

For "what is X% of Y?" or "X is what percent of Y?", use our Percent Of Calculator. For percent increase or decrease between two values, use our Percentage Change Calculator.

For informational purposes only. Not financial advice.