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Profit Margin / Markup / Discount Calculator

Convert margin, markup, and discount with live formulas you can trust.

Your numbers

Start from an example

Mode
$
Margin

Result

Sale price
$61.54
Margin
35.00%
Markup
53.85%
Gross profit
$21.54

Price composition

Cost base and gross return on the same scale.

Cost
$40
Gross profit
$21.54
Sale price
$61.54
Formula trace

sale_price = cost / (1 - margin_percent/100)

General business information, not legal, tax or financial advice. The result comes only from your inputs and the published method. How we check our numbers.

How to use it

  1. Pick the correct mode first: margin to price, markup to price, discount to sale price, or sale price to discount. Then fill in the fields that mode shows (cost with a margin or markup, or a list price with a discount or sale price) so the math reflects whether you are setting a new price, evaluating a markdown, or reverse-checking a quote.
  2. Read the answer for your mode (the sale price, or the discount in sale-to-discount mode), then gross profit, margin percent, markup percent, discount percent when there is a list price, and the formula trace. Use it to catch common interpretation errors, such as assuming 50% markup equals 50% margin when it actually equals a 33.3% margin.
  3. Treat warnings as decision signals, not cosmetic notes. Margin above 80% often means cost input is incomplete, a discount above 60% usually indicates clearance pricing, and any sale price below cost means the transaction destroys gross profit immediately.
  4. Use the output to set standard pricing guardrails for sales teams, promo calendars, and quote templates. If a planned discount drops margin below your minimum acceptable threshold, change bundle structure or add value before approving the offer.
  5. Re-run for every supplier cost change, promo test, or channel-specific price list. Track average realized discount and post-discount margin by channel because discount creep often grows slowly enough to hide until gross profit compresses.

Questions people usually ask

What is the difference between margin and markup?

Margin is gross profit as a percentage of sale price, while markup is gross profit as a percentage of cost.

Can this convert discounts too?

Yes. Use list price with discount percent to compute sale price, or reverse-calculate discount from list and sale price.

Does this include VAT or sales tax?

No. This tool models gross pricing only. Tax handling should be applied separately for your jurisdiction.

Is this tool free and private to use?

Yes. AI Biz Hub tools are free, no-signup browser tools. Inputs stay in your browser unless you choose to share a URL.

Is this professional advice?

No. Outputs are business planning estimates — not legal, tax, or accounting advice.

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Background on the Profit Margin / Markup / Discount Calculator

  • Examples Markup Examples

    Four worked markup cases: the selling price you need when unit cost rises or your margin target moves, with the equivalent markup on cost.

All resources for this calculator (1)
  • 8 min read How to Price a Product

    Price a product by matching the model to your cost structure and willingness-to-pay evidence: cost-plus floor, competitive ceiling, value aim.

  • 7 min read Wholesale Pricing Tools With Automated Updates (2026)

    Wholesale pricing tools for 2026: margin-target, markup and keystone methods, apparel margins by channel, and what automated price updates trigger on.

All articles

More in AI product economics

Understand the costs, margins, and pricing of building AI-powered products.

The AI product economics guide

Use it from code

The same calculation as a JavaScript module you can import. It runs where you import it, with no request, key or rate limit.

import { compute } from "https://aibizhub.io/engines/margin-markup-discount-calculator.js";

Input and output contract, TypeScript types and the guide for agents.