Discount, Margin & Markup Calculator

● Business Pricing Engine

Calculate sales discounts, profit margins, cost markups, and final retail prices in real time.

Currency: USD ($)

Discount & Sale Price Details

Live updates enabled

Original Price Standard retail list price

Primary Discount

% Off

Quick % Presets:

Stack Additional Promo / Coupon Sequential

Applied to the reduced price, not original.

Include Sales Tax

∑

Formula in Motion

Final = [Original × (1 - D1)] × (1 - D2) × (1 + Tax)

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Commercial Accuracy

Rounded to 2 decimal places using standard commercial banker's rounding.

🏷️Final Retail Payable

Real-time

Final Out-of-Pocket

$93.53

Includes primary savings, sequential discount & sales tax.

Payable Subtotal: 72.0% Total Discount: 28.0%

Original Price: $120.00
Total Discount Savings: -$33.60 (-28.0%)
Subtotal (Before Tax): $86.40
Sales Tax (8.25%): +$7.13
Final Out-of-Pocket: $93.53

Effective Savings Rate

28.00%

Stacked impact

Net Cash Savings

$33.60

Without tax included

Frequently Asked Questions

What is the difference between Profit Margin and Markup?

While both metrics express profitability, they use different denominators:

• Profit Margin is profit divided by Revenue (Selling Price): (Selling Price - Cost) / Selling Price. Margin can never exceed 100%.

• Markup is profit divided by Cost: (Selling Price - Cost) / Cost. Markup can easily exceed 100%, 200%, or more.

How do stacked / sequential discounts work?

Stacked discounts are applied sequentially, not added together. If an item has a 20% store discount plus an additional 10% coupon, the 10% is calculated on the already discounted price (80% of original), yielding an effective total discount of 28%, rather than 30%. This prevents retailer margin erosion.