Discount & Margin Calculator

Profit Margin, Markup & Wholesale Discount Calculator

Compute gross profit margins, cost markups, retail sale discounts, and multi-tier wholesale schedules with instant break-even projection. Zero server uploads — 100% computed privately in your browser.

Calculation Method
Solve for Variable
$
%
$
Selling Price (MSRP)
$100.00
Customer retail price
Gross Profit
$55.00
Price minus cost
Gross Margin
55.00%
Profit ÷ Revenue
Cost Markup
122.22%
Profit ÷ Unit Cost
Revenue & Profit Composition
High Margin Product
Cost 45%
Fees 13%
Profit 42%
COGS: $45.00
Fees: $12.70
Net Profit: $42.30
Gross Profit (Pre-Fees)$55.00
Less Fulfillment & Shipping-$4.50
Less Payment Processing Fee-$3.20
Less Marketplace Commission-$5.00
True Net Profit in Pocket$42.30 (42.30% Net)
Calculation Formula Walkthrough
Gross Profit = Price ($100.00) - Cost ($45.00) = $55.00
Gross Margin = ($55.00 ÷ $100.00) × 100% = 55.00%
Cost Markup = ($55.00 ÷ $45.00) × 100% = 122.22%

Guide: Margin vs. Markup & Wholesale Discounting Strategy

Confusing gross margin with markup is one of the most fatal financial errors in retail and e-commerce. Mastering the mathematical difference protects your business from cashflow depletion and preserves profitability.

Gross Profit Margin Explained

Margin is the percentage of your selling price that is profit. It tells you how many cents out of every dollar collected remain after paying for inventory.

Gross Margin % = ((Selling Price - Cost) ÷ Selling Price) × 100

Example: A shirt costs $50 to produce and sells for $100. Profit is $50. Gross Margin is 50%.

Cost Markup Explained

Markup is the percentage added on top of your unit cost to arrive at the selling price. It measures how much higher the retail price is compared to cost.

Markup % = ((Selling Price - Cost) ÷ Cost) × 100

Example: If an item costs $50 and you add a 50% markup, you sell it for $75 (earning $25, which is only a 33.3% margin!).

Frequently Asked Questions (FAQ)