Posted 2021-03-01
with tags formulas, excel formulas

Suppose you have the discounted price and know the percentage discount, and you need to know the original price (price before discount). It's easy to calculate using a simple formula that divides the discounted price by the result of 1 minus the discount.

```
=price/(1-discount)
```

Where `price`

is the actual price paid (AKA sale price, discounted price) and `discount`

is the decimal value corresponding to the percentage discount (so .2 for a 20% discount, etc.).

For example, maybe you purchased a used car for $800, and the sleazy used car salesman lured you in with the fact that the car was on sale with a discount of 60%. After getting home with the car, you are left wondering what the full cost of the car was before discount.

We'll translate the 60% discount to .6 for our `discount`

variable in the formula:

```
=price/(1-discount)
=800/(1-0.6)
=800/0.4
=2000
```

After calculating that the original full price of the $800 used car is actually $2000 dollars, you can now rest easy knowing that you got a great deal from the friendly used car salesman.