# Margin With Discount Calculator

*“Financial Management: Theory and Practice“*(2016)

This calculator combines two common problems - your desire to calculate your profit margin (or markup) while giving the customer a discount at the same time.

The *base margin*, *base markup* and *base revenue* values are all of these values before the discount is taken into account. The discount is applied to *base revenue* and results in *discounted revenue*. The *true margin* and *true markup* fields show your real margin and markup, after the discount has been considered. Let's take an example scenario:

You buy blue jeans at `$60`

a piece. Usually, you work with a `40%`

gross margin, so it gives you a sale price of `$100`

(remember, margin is a ratio of profit to revenue, while markup is a ratio of profit to cost). This would give you a `$40`

profit, but a customer wants to make a really big order and you're willing to lower your price by `20%`

and sell it for `$80`

. All things considered, your true gross margin is `25%`

.

As for most of our calculators, you may solve for any value - for example, you may start with the *profit* field and work your way up to find out the maximum you may pay your supplier (the *cost*).