There is no point reaching for a calculator that cannot show its working. This one starts from cost before discount, discount, base margin and true margin and reports price after discount, base revenue and base markup, so you can see how each answer follows from the numbers you entered.
What Is the Margin with Discount Calculator?
The margin with discount calculator takes cost before discount, discount, base margin and true margin and turns them into price after discount, base revenue and base markup.
It is the kind of calculation you would otherwise do on the back of an envelope: mechanical, repeatable and easy to get subtly wrong without noticing.
How the Margin with Discount Figure Is Built
Each result is calculated from the ones before it, so the working is fully visible. That matters when the answer is going to be quoted to somebody else and you need to be able to explain where it came from.
The figures are exactly as good as the assumptions underneath them. Check the rates, the periods and the tax treatment before you rely on the result.
Reading the Result Sensibly
A small change in an input can move the result by much more than you would expect, particularly where the calculation divides by one of the figures you supplied. That is worth understanding before you rely on a figure.
For anything that will be committed to, write the inputs down beside the result. A number you can reproduce is worth far more than one you cannot explain.
A Worked Example
Working through an example, with cost before discount set to 10, discount set to 5, base margin set to 2, the calculator returns base markup of -2, and true markup of -1.0101, and base revenue of -10. Substitute your own figures and the same steps produce the same kind of answer.
Frequently Asked Questions
What do I need to work out price after discount?
Enter cost before discount, discount, base margin and true margin. The calculator then works through the relationship and reports price after discount, base revenue and base markup.
What does the margin with discount actually calculate?
It takes cost before discount, discount, base margin and true margin and converts them into price after discount, base revenue and base markup using the standard relationship for this problem. Each step is applied in turn, so every output is traceable back to the numbers you typed in.
How should I enter cost before discount?
Use the value you actually have, in the unit shown next to the field. Enter every value in the same unit system. The calculator assumes the figures you supply are consistent, so it cannot correct a mistake that happens before the calculation starts.
Why does a small change in one value move the answer so much?
That happens when an output depends on a ratio, because dividing by a small number magnifies any change in it. Check the units first, then check whether the value you entered is in the range the relationship was designed for.
Do I have to fill in every field?
Only the fields a particular result depends on. If you leave one blank, the results that need it simply show a note instead of a number, and everything else still works.