Calculate a counter offer for salary negotiations, buying a listed price, or meeting in the middle with percentage-based strategies for easy comparison.

Counter Offer Calculator

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Discount-Based Counter Offer Formula

The following formula is used to calculate a price-only counter offer when you want your offer to be a specific discount (or markup) from the original offer amount.

CO = O(1 - D)

Variables:

  • CO is the counter offer amount ($)
  • O is the original offer amount ($)
  • D is the discount/markup rate (decimal). For example, 0.20 means 20% off, and −0.10 means a 10% increase.

To calculate the counter offer, multiply the original offer amount by (1 − D). This gives the counter offer amount.

What is a Counter Offer?

A counter offer is a response given to an initial offer, indicating that the initial offer is not acceptable as it stands, but could be acceptable if certain changes are made. It is a common practice in various transactions such as real estate deals, business sales, and salary negotiations. A counter offer effectively rejects the original offer and puts a new offer on the table for consideration. Note that real-world counteroffers can change more than just price (for example, closing dates, contingencies, benefits, warranties, or delivery terms); this calculator models only the price change using a discount/markup rate.

How to Calculate Counter Offer?

The following steps outline how to calculate a price-based Counter Offer using the formula: CO = O(1 − D).

  1. First, determine the original offer amount ($).
  2. Next, determine the discount/markup rate (decimal). If you have a percent, divide by 100 to convert it to a decimal. Use a negative value if your counter offer is higher than the original offer (markup).
  3. Next, insert the values into the formula CO = O(1 − D).
  4. Finally, calculate the Counter Offer amount.
  5. After calculating the result, check your answer for accuracy.

Example Problem:

Use the following variables as an example problem to test your knowledge.

Original offer amount ($) = 500

Discount rate (decimal) = 0.2

Counter offer (CO) = 500(1 − 0.2) = 500(0.8) = 400