Working backwards
$80 after 20% off? It wasn’t $96.
"MRR grew 25% to $50k. What was it last month?" Most people add 25% back on and get it wrong. Getting this right is how you catch errors in board decks.
The move
Turn the percent into a multiplier: +25% means × 1.25, −20% means × 0.8. To go backwards, divide by that multiplier.
Worked example
After a 20% discount a plan costs $80. Original price?
- −20% means you pay 80% → × 0.8
- original × 0.8 = $80
- original = 80 ÷ 0.8 = $100
- Check: 20% of $100 is $20, and $100 − $20 = $80 ✓
- Adding the 20% back on ($80 + $16 = $96) is the trap. The 20% was taken off the *original*, not the discounted price.
- Dividing by 0.8 is the same as × 10 ÷ 8, or × 5 ÷ 4.