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Business & Invoice Tools

Profit Margin, Markup & Selling Price Planner Online Free

Calculate a list price from target margin or markup, test customer discounts and tax, and see the actual profit remaining per unit.

Plan selling price, discount, margin and markup together

List price before discount

₹1,071.43

Net selling price

₹964.29

Customer price incl. tax

₹1,137.86

Profit per unit

₹214.29

Actual margin

22.22%

Actual markup

28.57%

Projected total profit

₹21,428.57

The planned price remains profitable after discount

The selected margin method gives a list price of ₹1,071.43. After discount, actual margin is 22.22% and markup is 28.57%.

Recommended next actions

  • Use margin for profitability reporting and markup when applying a percentage to cost; they are not interchangeable.
  • Confirm whether tax is calculated after discount under the applicable invoice rules.
  • Test competitor pricing and demand before adopting the calculated price.

About this tool

Use one pricing workflow to avoid the common mistake of confusing margin with markup or approving a discount that removes the intended profit.

Common use cases

  • Retail and ecommerce product pricing
  • Wholesale quotation and discount review
  • Menu, service and catalogue price planning

How to use it

  1. Enter the full unit cost.
  2. Choose margin or markup and enter the target rate.
  3. Add discount, tax and expected quantity to review the practical result.

Important notes

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Frequently asked questions

What is the difference between margin and markup?

Margin is profit as a percentage of selling price, while markup is profit as a percentage of cost. The percentages are not interchangeable.

Does the calculator include discount and tax?

Yes. It applies the selected discount to the planned list price, then calculates tax and the final customer price.

Can I use this for ecommerce pricing?

Yes, but add marketplace fees, payment charges, returns and fulfilment costs to the unit cost before making a final decision.