Percentage Discounts and Markups
Percentages are used in everyday financial situations such as discounts in shops and markups on prices. Understanding how to calculate these helps with real-world money decisions.
What You Need to Know
Key Concept Diagram
To find a percentage of an amount: convert the percentage to a decimal and multiply (25% of $80 = 0.25 x 80 = $20)
Discount = original price x discount percentage; sale price = original price - discount
Markup = cost price x markup percentage; selling price = cost price + markup
GST in Australia is 10%: GST amount = price / 10; price with GST = price x 1.10
Key Vocabulary
Discount
A reduction in the original price, expressed as a percentage
Markup
An amount added to the cost price to determine the selling price
Sale price
The new price after a discount has been applied
GST
Goods and Services Tax — a 10% tax added to most goods and services in Australia
Knowledge Check
Select the correct answer for each question. Click "Check Answer" to see if you are right.
Question 1
A jacket costs $120. There is a 25% discount. What is the sale price?
Question 2
A shop buys a toy for $40 and adds a 15% markup. What is the selling price?
Question 3
A $200 item has 10% GST added. What is the final price?
Key Concepts Summary
- ●To find a percentage of an amount: convert the percentage to a decimal and multiply (25% of $80 = 0.25 x 80 = $20)
- ●Discount = original price x discount percentage; sale price = original price - discount
- ●Markup = cost price x markup percentage; selling price = cost price + markup
- ●GST in Australia is 10%: GST amount = price / 10; price with GST = price x 1.10