Customer acquisition
Ads and sales commissions must fit within the margin left by the product.
Free business calculator
Margin and pricing calculator
Calculate margin and markup, set a target price and see how a discount changes unit profit. Results are calculated locally in your browser.
Margin and markup
Discount impact
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Methodology and scope
Verified July 13, 2026. Margin is product profit divided by net price; markup is product profit divided by direct product cost. The calculator does not include ads, payment or marketplace fees, shipping, returns, tax or fixed costs.
Product data
PLN
Results
-
Margin
(Price-Cost)/Price
-
Markup
(Price-Cost)/Cost
-
Product profit
before other costs
Price breakdown
Cost: 70%
Profit: 30%
Net price
-
+ VAT (23%)
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Gross price
-
Set the selling price based on cost and a target margin or markup.
Set price
PLN
Your price
-
Net price
-
Gross price (incl. VAT)
Cost
-
Unit profit
-
Margin
-
Markup
-
Suggested "round" prices
See how a discount affects your margin and how much more you need to sell to keep the same profit.
Discount simulator
PLN
PLN
Discount impact
Before discount
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Price
-
Margin
-
Profit/unit
-20%
After discount
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Price
-
Margin
-
Profit/unit
-
Margin drop
-
Profit/unit drop
To keep the same monthly profit:
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Required sales
-
Discount impact table
See how different discount levels affect margin with your parameters.
Scroll the table horizontally to see all columns.
| Discount | New price | New margin | Profit/unit | Required sales increase |
|---|
Compare six price variants and see how each changes margin, markup and product profit. This comparison does not predict demand or conversion.
PLN
PLN
PLN
Margin ↔ Markup conversion table
Scroll the table horizontally to see all columns.
| Margin | Markup | Cost multiplier |
|---|---|---|
| 10% | 11.1% | ×1.11 |
| 15% | 17.6% | ×1.18 |
| 20% | 25.0% | ×1.25 |
| 25% | 33.3% | ×1.33 |
| 30% | 42.9% | ×1.43 |
| 35% | 53.8% | ×1.54 |
| 40% | 66.7% | ×1.67 |
| 45% | 81.8% | ×1.82 |
| 50% | 100.0% | ×2.00 |
| 60% | 150.0% | ×2.50 |
| 70% | 233.3% | ×3.33 |
Formulas and definitions
Scroll the table horizontally to see all columns.
| Term | Formula | Example |
|---|---|---|
| Product margin | (Price - Cost) / Price × 100% |
(100 - 70) / 100 = 30% |
| Markup | (Price - Cost) / Cost × 100% |
(100 - 70) / 70 = 42.9% |
| Price from margin | Cost / (1 - Margin%) |
70 / (1 - 0.30) = 100 |
| Price from markup | Cost × (1 + Markup%) |
70 × (1 + 0.429) = 100 |
| Margin from markup | Markup / (1 + Markup) |
0.429 / 1.429 = 30% |
| Markup from margin | Margin / (1 - Margin) |
0.30 / 0.70 = 42.9% |
How to interpret your margin
A useful margin target depends on the whole business model, not only the product category. Compare your result with your own costs, customer acquisition and return rate.
Returns and fulfilment
Shipping, returns and payment costs can materially reduce real contribution profit.
Volume and repeat purchase
Lower unit margin may work with scale or repeat purchases, but this needs evidence from your data.
Fixed costs and tax
Product profit is not company profit. Include payroll, tools, rent and tax in the full P&L.
Formulas and methodology
margin | (price - cost) / price × 100% |
markup | (price - cost) / cost × 100% |
priceFromMargin | cost / (1 - margin%) |
priceFromMarkup | cost × (1 + markup%) |
Original editorial calculator. Results computed locally. Last verified: July 13, 2026.
Pricing strategies
Premium Pricing
A higher price can increase unit profit, but validate its effect on conversion and customer value.
Penetration Pricing
A lower entry price may help acquisition, provided contribution profit and a path to sustainable pricing are defined.
Competitive Pricing
Competitor prices are context, not a target. Compare product scope, service and brand position before copying them.
Psychological Pricing
Price endings such as .99 may affect perception in some contexts. Treat them as a hypothesis and test them on your audience.
Margin vs markup: what is the difference?
Margin
Margin = (Price - Cost) / Price × 100%
The percentage of net selling price left after direct product cost.
Example: cost 70, price 100 → margin 30%
Markup
Markup = (Price - Cost) / Cost × 100%
How much the net price is increased relative to direct product cost.
Example: cost 70, price 100 → markup 42.9%
30% margin is not 30% markup. At 30% margin, markup is about 42.9%.