Enter the original offer amount and the discount rate into the calculator to determine the counter offer amount. This calculator can also evaluate any of the variables given the others are known.
Counter Offer Formula
The following formula is used to calculate the counter offer.
CO = O - (O * D)
Variables:
- CO is the counter offer amount ($)
- O is the original offer amount ($)
- D is the discount rate (decimal)
To calculate the counter offer, multiply the original offer amount by the discount rate. Then subtract the result from the original offer amount. This will give you 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.
How to Calculate Counter Offer?
The following steps outline how to calculate a Counter Offer using the formula: CO = O – (O * D).
- First, determine the original offer amount ($).
- Next, determine the discount rate (decimal).
- Next, insert the values into the formula CO = O – (O * D).
- Finally, calculate the Counter Offer amount.
- After calculating the result, check your answer for accuracy.
Example Problem:
Use the following variables as an example problem to test your knowledge.
Original offer amount ($) = 500
Discount rate (decimal) = 0.2
