Markup & Discount Calculator
For all percentage increase (markup) and percent off (discount) calculations, there are five possible variables. You may not always need them, and you may not even be aware of them, but they are always present. Do not let this discourage you. The user provides values for only two of the five, and the calculator computes the remaining three. More below…
The Calculator-Calculate Markup and Discount
Information
Note: Whether you enter a markup percentage or a discount percentage, the calculator always computes the other. A user cannot provide both. The results must stay consistent. A 10% increase always equals 9.0909…% off. That relationship does not change.
Percentage Increase Calculator
To calculate a specific percentage increase, enter these values:
- Enter “Net Amount.”
- Enter “Percent Increase (markup).”
- Set the other three inputs to 0.
To determine what percentage an increase represents, use one of the following setups:
- Enter 0 for “Percent Increase (markup).”
- Enter the “Net Amount.”
- Enter either “Amount Added/Subtracted” or “Gross Amount.”
- Set the remaining inputs to 0.
Percentage Off Calculator
To calculate a specific percent off, enter these values:
- Enter “Gross Amount.”
- Enter “Percent Off (discount).”
- Set the other three inputs to 0.
To determine what percent off a discount represents, use one of the following setups:
- Enter 0 for “Percent Off (discount).”
- Enter the “Gross Amount.”
- Enter either “Amount Added/Subtracted” or “Net Amount.”
- Set the remaining inputs to 0.
Percentage Change Calculator
Implied Percentage
Percent increase and percent off are both percentage change calculations. The examples above use the traditional approach. For a percentage increase, you begin with a net amount and increase it by a percentage or an amount to get the gross amount. For a percentage off, you start with a gross amount and subtract either a percentage or an amount.
These are conventional examples. This calculator also lets you enter what is usually the implied percentage in those examples, and it will compute the percentage that is normally provided.
What does this mean?
Here is the explanation.
Consider a percentage increase. Instead of providing a “Net Amount” and an “Amount Added/Subtracted,” you may enter the “Gross Amount” in place of the “Net Amount,” and the calculator will still compute the “Percent Increase (markup).”
What is the benefit?
This capability allows you to calculate a percent change from the reverse of the usual direction.
For example, if you buy items for resale and want a 30% markup, enter the “Gross Amount,” such as $49.95, and the “Percent Increase (markup)” of 30%. The calculator will determine the maximum price you can pay and still achieve the desired markup.
Markup & Discount Calculator Help
In many businesses, accountants and managers must work with both markups (net amount plus a percentage) and discounts (gross amount minus a percentage). Each of the five values can be either a user input or a calculated result. This calculator lets you compute three values by entering only two values.
The Net Amount is either the amount before applying a markup or the amount after applying a discount.
The Markup Percentage is the percentage added to the net amount. For example, $100 plus a 5% markup results in a Gross Amount of $105.
The Amount is $5.00. It is the difference between the Net Amount and the Gross Amount.
The Discount Percentage is the percentage deducted from the Gross Amount. For example, $105 minus a 5% discount equals a Net Amount of $99.75. (In this case, the Amount is $5.25.)
The Gross Amount is either the amount before deducting a discount or the amount after applying a markup.
Example 1: You purchased 1,000 shares of stock for $23,554.00. Enter this in “Gross Amount.” You later sold the stock for $19,054.00. Enter this in “Net Amount.” Click [Calc]. The Discount Percentage (your percentage loss) is 19.1%. The Markup Percentage (the return needed to recover the loss) is 23.6%. This assumes you reinvest the full $19,054.
Example 2: Sales tax is a markup percentage added to the net amount. If you want to advertise a price that includes sales tax, you cannot use the tax rate to subtract from the advertised price to get the net price. To calculate the net price, enter the total price including tax in “Gross Amount” (for example, $495.00). Enter the sales tax rate in “Markup Percentage” (for example, 7%). Set the other three inputs (Net Amount, Amount, and Discount Percentage) to 0.0, and calculate.
The Net Amount before sales tax is $462.62, and the Amount (the sales tax) is $32.38.
Example 3: You can also calculate the net purchase price given a target markup. If you can sell an item for $75 and want a 30% markup, what purchase price meets that goal? Enter $75.00 for “Gross Amount” and 30% for “Markup Percentage.” The required purchase price is $57.69. The profit (difference) is $17.31, and the discount percentage is 23.08%. You may also use this approach to calculate a buy-to-cover price for a short position based on a profit target.
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