# Discount, margin and markup calculator

Written on 4 November 2026 by Ratio. Every example was run through Ratio that day.

“49.99 - 25%” is the sale price, and “120 is 20% off what” the price it came from. Ratio reads percentages the way you'd say them.

## Price after a discount

| 49.99 - 25% | 37.49 |
| --- | --- |
| 200 - 20% - 10% | 144 |

Two discounts in a row aren't 30% off: the second comes off the price that is already lower.

## Price before a discount

| 120 is 20% off what | 150 |
| --- | --- |
| 30 is what % of 120 | 25% |

## Margin and markup

| margin(80, 100) | 20% |
| --- | --- |
| markup(80, 100) | 25% |
| 80 + 25% margin | 106.67 |

Margin is profit as a share of the selling price; markup is profit as a share of the cost. For tax on top, see the [VAT calculator](https://useratio.app/vat-calculator), and for other percentages the [percentage calculator](https://useratio.app/percentage-calculator).

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## Questions

**How do I work out a discount?** Take the discount's share of the price off the price: 25% off 49.99 is 49.99 − 12.50 = 37.49. In Ratio, type “49.99 - 25%”.

**What is the difference between margin and markup?** Both compare profit, but margin divides it by the selling price and markup by the cost. Buying at 80 and selling at 100 is a 20% margin and a 25% markup.

**How do I find the original price?** Divide the sale price by what is left after the discount: 120 ÷ 0.8 = 150. In Ratio, type “120 is 20% off what”.

Source: https://useratio.app/discount-calculator