Discount & Markup Calculator

Work out a sale price, check a stacked offer, convert markup to margin, or find the price that gives you the profit you want — VAT and fees included.

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Discount & Markup Calculator

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    Results are estimates for planning. Rules and rates change — confirm with NBR, your bank or a professional before filing or paying.

    Calculated with Eleven POS free business tools — https://elevenpos.online/en/tools/discount-markup-calculator

    Guide

    Markup vs margin — the costly mix-up

    Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. They are never the same number.

    Buy at ৳800, sell at ৳1,000: profit ৳200. Markup = 200 ÷ 800 = 25%. Margin = 200 ÷ 1,000 = 20%. A shop owner who "adds 25%" and thinks they make 25% is wrong by a fifth.

    • Margin = Markup ÷ (100 + Markup) × 100
    • Markup = Margin ÷ (100 − Margin) × 100
    • Price for a target margin = Cost ÷ (1 − Margin)

    Stacked discounts don't add up

    "20% off + extra 10%" is not 30% off. The second discount is taken from the already-reduced price: 100 → 80 → 72, so the real discount is 28%.

    How much discount can you afford?

    Every 10% you take off the price comes straight out of your margin. At a 20% margin, a 10% discount halves your profit per item — you need to sell twice as many to earn the same. The target-profit tab shows the biggest discount you can give before you start losing money.

    FAQ

    Frequently asked questions

    How do I calculate the price after a discount?
    Sale price = Original price × (1 − Discount ÷ 100). ৳2,500 at 20% off is ৳2,500 × 0.8 = ৳2,000.
    How do I find the discount percentage from two prices?
    Discount % = (Original − Sale) ÷ Original × 100. From ৳2,500 to ৳1,999 is a 20.04% discount.
    What margin should a retail shop aim for?
    It depends on the trade: groceries often run 8–15%, clothing and cosmetics 30–50%, mobile accessories 25–40%. Cover rent, salaries and returns first — use the break-even calculator for that.
    Does the target price include VAT?
    Pick a VAT rate and the calculator adds it on top of your price, and includes any payment or platform fee you enter.

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