Free · Sales calculators 💸

Discounted Selling Price, Profit, Margin & Markup

Connect item cost, base markup and a sale discount to find selling price, gross profit and the remaining margin or loss.

  • Formula & worked example
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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

An item costing 80 with 25 percent base markup starts at 100. A 20 percent discount brings the selling price back to 80, leaving zero gross profit, margin and markup.

Sale price = cost × (1 + base markup) × (1 − discount); profit = sale price − cost; margin = profit/sale price

Worked example

Enter these known values and leave the other values blank.

Cost of the item
80 USD
Base markup on cost
25 %
Discount from the base price
20 %
Base margin on selling price
20 %
Selling price before discount
100 USD
Selling price after discount
80 USD
Margin after discount
0 %
Markup after discount
0 %
Gross profit after discount
0 USD

Assumptions and limitations

  • Base markup is nonnegative, so the base price is at least cost. The discount is from zero up to, but excluding, 100 percent.
  • Post-discount profit, markup and margin may be negative. A discount can sell the item below cost.
  • Cost and discounted price must be positive. A 100 percent discount makes margin undefined and is excluded from this margin model.
  • This is item-level gross profit before tax, shipping, labor, payment fees or overhead unless you include those costs yourself.

Common questions

Why are margin and markup different?

Margin divides profit by selling price. Markup divides the same profit by cost.

Can the sale produce a loss?

Yes. A discounted price below cost produces negative profit and negative margin; the calculator keeps that result visible.

References

Bookify permits zero base markup and signed profit after discount, while requiring valid margin denominators and a positive discounted selling price.

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