Discount Formula:
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The Cost Before Discount calculation determines the original price of an item before a discount was applied. This is useful for understanding the true value of discounted items and comparing different discount offers.
The calculator uses the following formula:
Where:
Explanation: The formula reverses the discount calculation to find the original price by dividing the discounted price by (1 - discount percentage).
Details: Knowing the original price helps consumers understand the true value of discounts, compare different offers accurately, and make informed purchasing decisions.
Tips: Enter the discounted price in USD and the discount percentage (0-99.99%). Both values must be positive numbers, and discount must be less than 100%.
Q1: Why can't the discount be 100% or more?
A: A 100% discount would make the item free, and mathematically the original price would be undefined (division by zero). Discounts over 100% would imply the seller is paying you to take the item.
Q2: How does this differ from markup calculations?
A: Markup is calculated differently - it's based on cost price, while this calculation works backward from a selling price after discount.
Q3: Does this work for multiple successive discounts?
A: No, this calculates a single discount. For multiple discounts, you would need to apply the formula sequentially for each discount.
Q4: How accurate is this calculation?
A: The calculation is mathematically precise for the given inputs. However, rounding in the original pricing might cause minor discrepancies.
Q5: Can I use this for bulk discounts?
A: Yes, as long as the discount percentage applies uniformly to all items in the bulk purchase.