E-commerce
Discount and Margin Calculator
See what a discount does to your profit: sale price, margin, markup, the deepest discount you can afford and the price that reaches a target margin.
Runs in your browser; nothing is uploaded. · Free, no account · 1 min
What one unit costs you, before any selling costs.
Importing a saved run into your account is coming soon. Until then, your last runs stay in this browser only, and you can download your files.
How to use
- Enter the list price before the discount and the discount in percent.
- Enter what one unit costs you.
- Optionally enter a target margin in percent.
- Read the sale price, profit, margin and markup, and the warning if you would sell below cost.
What it checks and how it works
The calculator uses the published definitions. Sale price = list price x (1 - discount). Profit = sale price - cost. Gross margin = profit / sale price. Markup = profit / cost. They are different measures: a product bought for 80 and sold for 100 has a 20% margin and a 25% markup.
The break-even discount is (list price - cost) / list price: any deeper discount sells below cost. The price for a target margin is cost / (1 - margin). Figures are not rounded until they are shown.
Use prices on the same basis, for example all without VAT. The tool has no fees, shipping or returns in it, so treat the margin as a margin before those costs.
Sources
- Wikipedia: Gross margin opened 29 Oct 2026
- Wikipedia: Markup (business) opened 29 Oct 2026
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Questions
About this tool
Margin is profit as a share of the selling price. Markup is profit as a share of the cost. Selling at 100 what cost 80 gives a 20% margin and a 25% markup.
It is the largest discount at which the sale price still covers your cost. A deeper discount makes a loss on each unit sold.
Use the same basis for the list price and the cost, normally both without VAT. Use the VAT calculator to take VAT out of a price that includes it first.
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