Turn a cost and markup into a price, and see the margin and any discount.
A markup, margin, and discount calculator turns a unit cost and markup into a selling price, shows the resulting profit margin, and applies any discount.
These two are easy to confuse. Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. A 50% markup on a $40 cost gives a $60 price but only a 33% margin. Pricing on markup while thinking in margin is a common mistake that quietly erodes profit.
A discount comes straight out of the margin, so its effect on profit is larger than the headline percentage suggests, a 20% discount on a product with a 33% margin wipes out most of the profit. The calculator shows the discounted price and remaining profit so you can see how much room a promotion actually leaves.
Markup is profit as a percent of cost; margin is profit as a percent of the selling price. The same dollar profit gives a higher markup than margin.
Multiply the cost by one plus the markup. The calculator also shows the resulting margin and any discounted price.
A discount comes entirely out of your margin, so even a modest discount can erase a large share of the profit.
See the exact formula and a worked example on our methodology page.