Free tool
Dealer price calculator: discount, multiplier, markup and margin.
Enter a list price and a dealer's level, as a percentage off or a multiplier; whichever you type, the other fills in. Add a second discount to see how stacked discounts really combine, and the dealer's markup or margin to see what their customer pays.
A negative discount is a price over list: −5 is a multiplier of 1.05.
The arithmetic
- Multiplier = 1 − discount. 45% off list is a multiplier of 0.55, so a $1,000 window costs the dealer $550.
- Discounts in a row multiply. 40% off and then 10% off is 0.60 × 0.90 = 0.54, or 46% off, not 50%.
- Markup is on cost; margin is on the selling price. A 30% markup on $600 is $780.00. A 30% margin on $600 is $600 ÷ 0.70 = $857.14.
- Prices are worked in exact cents and rounded once, at the end.
More on how price levels, customer terms and a dealer's own markup fit together: dealer pricing explained.
Dealer pricing — common questions
How do I convert a discount to a multiplier?
Subtract the discount from 1: 45% off is a multiplier of 1 − 0.45 = 0.55. To go the other way, subtract the multiplier from 1 and multiply by 100: a multiplier of 0.62 is 38% off.
Is 40% plus 10% the same as 50% off?
No. Discounts applied one after another multiply: 0.60 × 0.90 = 0.54, which is 46% off. Agree in writing which way a stacked discount is meant.
What is the difference between markup and margin?
Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. On a $600 window, a 30% markup sells for $780, while a 30% margin sells for $857.14.