Discount & Margin Calculator: Complete Guide
The discount and margin calculator finds a sale price, customer savings, and gross profit margin from the original price, discount percentage, and purchase cost. It helps retailers and shoppers understand the difference between discount, markup, and margin.
How to Use This Calculator
- Enter the original or listed price.
- Enter the discount percentage offered to the customer.
- Add your purchase cost to estimate the gross profit margin.
Calculation Formula
Sale price = Original price × (1 - Discount ÷ 100)
A ₹2,000 item with a 25% discount sells for ₹1,500. If its cost is ₹1,100, the estimated gross margin is calculated from the sale price.
Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit divided by selling price, while markup is profit divided by cost price.
How much do I save with a discount?
Multiply the original price by the discount percentage divided by 100.
Related Calculators
The margin estimate excludes operating costs, shipping, payment fees, and other business expenses.