Formula trace
sale_price = cost / (1 - margin_percent/100)
PRICING · CONVERSION
Profit Margin / Markup / Discount Calculator
Convert margin, markup, and discount with live formulas you can trust.
Try a preset
Mode
$
Margin
Result
MARGIN
35.00%
SALE PRICE
$61.54
GROSS PROFIT
$21.54
MARKUP
53.85%
DISCOUNT
17.95%
Price composition
Cost base and gross return on the same scale.
Cost
$40.00
Gross profit
$21.54
Sale price
$61.54
Methodology →
Formula, assumptions, sources, and known limits.
How to use it
- Pick the correct mode first: margin to price, markup to price, discount to sale price, or sale price to discount. Then enter cost, list price, sale price, and the relevant percentage so the math reflects whether you are setting a new price, evaluating a markdown, or reverse-checking a quote.
- Read sale price, gross profit, margin percent, markup percent, discount percent, 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.
- 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.
- 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.
- 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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