Discount vs Markup

A discount and a markup of the same percentage don't cancel out, because each is calculated from a different starting price.

Discount, then the same percentage marked back up

Example: 20% off $100 = $80. Marking $80 back up by 20% = $96 — 4% short of the original $100.

Discount appliedPrice after same-% markup backMarkup needed to fully recover
10% off99% of original11.11%
20% off96% of original25%
25% off93.75% of original33.33%
30% off91% of original42.86%
40% off84% of original66.67%
50% off75% of original100%
60% off64% of original150%
75% off43.75% of original300%

Frequently asked questions

If something is 20% off, then marked back up 20%, is it the same price?
No. $100 discounted 20% is $80. Marking $80 back up by 20% gives $96, not $100 — the markup is calculated on the smaller, already-discounted price. In general, a d% discount followed by the same d% markup leaves you at (1 − (d/100)²) × 100% of the original price.
What markup actually undoes a 20% discount?
A 25% markup, not 20%. From the discounted price, the required markup is 100 × d ÷ (100 − d), which for d = 20 is 25%: $80 × 1.25 = $100.
What is the difference between a discount and a markup?
A discount reduces a price by a percentage of that same (original) price. A markup increases a price by a percentage of a different (usually smaller, cost) price. Because the percentage is taken from a different base each time, equal discount and markup percentages don't cancel out.
Does this matter for stacked discounts too?
Yes, for the same reason — each stacked discount applies to the already-discounted price, not the original, so two 10% discounts stack to 19% off (not 20%). See the discount calculator for worked stacking examples.

Want to work out a specific sale price or a stacked coupon? Try the discount calculator. Pricing a product from cost instead? The markup & margin calculator converts between the two directly.