Discount vs Markup Calculator: Buyer's vs Seller's Perspective
Discounts and markups are two sides of pricing. Buyers think in discounts; sellers think in markups. Understanding both helps whether you're shopping or setting prices.
What is a discount?
A discount reduces the selling price by a percentage. 20% off $100 = $80 final price.
What is a markup?
A markup increases cost by a percentage to set the selling price. 50% markup on $50 cost = $75 selling price.
Why understanding both matters
A 50% markup does not equal a 50% discount. If you mark up $50 by 50% ($75), then discount it 50%, you get $37.50—below the original cost. This asymmetry is crucial for pricing strategy.
Comparison table
| Aspect | Discount Calculator | Markup Calculator |
|---|---|---|
| Based on | Selling price | Cost price |
| Direction | Price goes down | Price goes up |
| Formula | Price × (1 − %/100) | Cost × (1 + %/100) |
| Used by | Buyers, shoppers | Sellers, retailers |
| Example | 20% off $100 = $80 | 50% markup on $50 = $75 |
When to use each calculator
Discount Calculator
Use the Discount Calculator when shopping sales, comparing deals, or calculating coupon savings.
Use Discount CalculatorMarkup Calculator
Use the Markup Calculator when setting prices for products or services, or calculating profit margins.
Use Markup CalculatorNo. 50% markup on $100 cost = $150 price. Margin is 33% ($50/$150). Markup and margin are related but different.
Discount% = markup% ÷ (100 + markup%) × 100. Example: 50% markup = 33.3% discount from selling price.
Markup percentage is always larger than the equivalent margin or discount for the same dollar amount.