Work & business

Markup, margin & discount calculator

See per-item markup and margin, set an original price from a target, and check what a discount changes.

Turn on JavaScript to use these fields. No example result is shown. The explanation below shows the calculation. You can also browse All tools.

Your item and price

What do you want to work out?I know cost and selling priceI want a target markupI want a target gross margin

Item direct cost (R)R0 to R10 000 000. Direct cost per item, on the same VAT basis as the selling price.

Original selling price (R)R0 to R100 000 000 per item, before discount. Zero is a real no-sale-price case.

Discount (%)0 to 100%, with up to two decimals. Blank or 0 means no discount.

Matching VAT treatment for cost and selling priceIn target modes this applies to your future selling price and entered cost. No VAT is removed or added.

Gross profit per item before other costsFill in the details

Enter your item cost and price or target, then choose a known, matching VAT basis. Blank cost or price is unknown; 0 is a real amount.

Your cost and price figures stay only on this page. Reloading or leaving clears them.

How it's worked out

Markup divides selling price less direct cost by direct cost. Gross margin divides the same difference by selling price. Both are percentages on your chosen matching VAT basis.

A target markup uses cost multiplied by one plus the target percentage. A target margin divides cost by one minus that percentage. We round the required original price up to the next cent, so the target is met or exceeded before discount when the ratio is defined.

We apply the discount to the original price and round once to cents, then recalculate the actual difference and ratios. Your figures are the only source. We don't infer a VAT rate or calculate tax adjustments. Overhead, delivery, transaction fees, rent, returns and other costs are excluded unless you've put them in direct cost. This isn't net business profit or a recommended price.

Markup, margin & discount calculator

Your item and price

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