Learn how to calculate a discount, find the reduction percentage and correctly combine successive discounts.
A discount reduces an original price by a given percentage. Several situations can be confusing: finding the real reduction between two prices, calculating the amount saved, or combining successive discounts.
The Bethemesh discount calculator handles all three cases automatically.
Savings = Original price × Discount / 100
Final price = Original price × (1 − Discount / 100)
A 20% discount on €100 therefore saves €20 and gives a final price of €80.
To find the percentage from two prices:
Discount = (Original price − Final price) / Original price × 100
For €100 with 20% off and then another 10%, the first discount gives €80. The second applies to €80, producing €72. The effective discount is therefore 28%, not 30%.
For a business, a discount lowers the selling price while purchase or production cost often remains unchanged. A product costing €60 and normally sold for €100 has a €40 gross margin. After a 20% discount, its price is €80 and the margin falls to €20.
Check the effect with the margin calculator. If you need to separate net price and VAT, use the VAT calculator.
For a 20% discount, multiply the price by 0.80. For successive discounts, apply each remaining-price coefficient one after another instead of adding the percentages.
Learn how to convert net to gross, recover net from gross and calculate the VAT amount correctly.
Learn how to calculate commercial margin, distinguish margin rate from markup rate and set a selling price from a target margin.
Understand what margin, break-even point, ROI and EBITDA measure and when each indicator is useful.