Apply a markup to unit cost and see the price, profit and the margin it corresponds to.
Markup is applied to cost while margin is measured against price, so the two are never equal: a 120% markup is a 54.5% margin. Any discount comes off the selling price and therefore reduces margin faster than it reduces price. Pricing from a target margin rather than a markup is what stops a product being sold at a loss once discounts are applied.
Product Markup
Marked-Up Price = cost × (1 + markup %); margin % = profit ÷ selling price
Marked-Up Price = cost × (1 + markup %); margin % = profit ÷ selling price Markup is applied to cost while margin is measured against price, so the two are never equal: a 120% markup is a 54.5% margin. Any discount comes off the selling price and therefore reduces margin faster than it reduces price.
Pricing from a target margin rather than a markup is what stops a product being sold at a loss once discounts are applied.
This calculator takes 4 inputs: Unit cost, Markup on cost, Expected discount off list, Tax added at sale. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.