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Cost

$

Base margin

%

Base markup

%

Base revenue

$

Discount

%

Discounted rev.

$

True margin

%

True markup

%

Profit

$

This calculator combines two common problems - sometimes you want to calculate your profit margin (or markup) and give the customer a discount at the same time.

The *base margin*, *base markup* and *base revenue* are values before the discount is regarded. The discount is applied to *base revenue* and results with a *discounted revenue*. The *true margin* and *true markup* fields show your real margin and markup, after the discount has been considered. Let's have an example scenario:

You buy blue widgets at `$60`

a piece. Usually, you work with a `40%`

gross margin, so it gives you a sale price of `$100`

(remember, margin is a ratio of profit to revenue, while markup is a ratio of profit to cost). This would give you a `$40`

profit, but a customer wants to make a really big order and you're willing to lower your price by `20%`

and sell it for `$80`

. All things considered, your true gross margin is `25%`

.

As with all our calculators, you may solve for any value - for example, you may start with the *profit* field and work your way up to find out how much you may pay your supplier (the *cost*).