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Discount, Markup and Gross Margin

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Output

The three modes sit together because they are three directions of one question: what does this sell for, and what is made on it. Two things are easy to invert: · A fold discount and “percent off” are complements. Paying 80% of the price is the same as 20% off. The tool gives the fold, the percentage and the share you pay, so neither reading can be missed. · Gross margin and markup use different denominators. Margin divides by the price; markup divides by the cost. Cost 100, price 150: margin is 33.33% (50 ÷ 150) and markup is 50% (50 ÷ 100). Both are “half added on”, yet the figures differ — without naming the denominator they never reconcile. Margin mode also gives the price that hits a target margin, which is usually the number wanted when setting a price. Everything runs in your browser.

Features

  • Discount: sale price, savings and the share paid, with the Chinese fold and the English percentage together
  • Markup: cost and markup give the price, gross profit, margin and markup rate
  • Margin: cost and price give both the gross margin and the markup rate
  • ⚠️ Each rate states its denominator: margin divides by price, markup by cost
  • ⚠️ No mental arithmetic between a fold discount and “percent off” — all three figures are given
  • Gives the price needed for a target margin (price = cost ÷ (1 − target margin))
  • Amounts are handled in whole cents and always shown with two decimals
  • Runs entirely in your browser

How to use

  1. Choose the mode: discount, markup or margin
  2. Enter the matching input (price, cost, or cost and price)
  3. Set the discount, markup or target margin
  4. The result gives the price, the profit and the two different rates

FAQ

What does a fold discount actually take off?
It means paying 80% of the price, so 20% off. The Chinese fold states the share paid while the English percent-off states the reduction; they are complements. Entering 20 here means 20% off, and the result says “you pay 80%”, so the two directions cannot be confused.
Why do margin and markup differ?
Because the denominators differ. Gross margin is profit divided by price; markup is profit divided by cost. With cost 100 and price 150 the profit is 50: margin is 50 ÷ 150 = 33.33% and markup is 50 ÷ 100 = 50%. When a shop says “a 50% markup” it usually means the latter; the margin on a report is the former.
How do I work out the price to charge?
Use price = cost ÷ (1 − target margin). With cost 100 and a 40% target, the price is 100 ÷ 0.6 = 166.67. Enter the target in margin mode and this row appears.

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