The 25 Percent Illusion: How a Markup Mistake Almost Sank My Side Hustle
Why a 25 percent markup is a 20 percent margin, how to price a product once, and where a markup vs margin calculator and a reverse percentage check fit in.
Work out successive discounts, reverse-engineer a selling price from cost, a target profit and expenses, and check any percentage change.
Why a 25 percent markup is a 20 percent margin, how to price a product once, and where a markup vs margin calculator and a reverse percentage check fit in.
Discounts are applied one after another on the already-reduced amount, never added together. 20% then 10% off is not 30% off: a ₹1,000 item falls to ₹800, then to ₹720, an effective 28% reduction. The breakdown shows each step and the true combined percentage so quotes stop being misleading.
Enter your cost price, the net profit you want to keep, and any operating or advertising spend you have to recover. The reverse calculator adds cost plus expenses plus target profit to give the exact selling price, and shows the markup on cost and the margin on the selling price you would need to charge.
Markup is profit as a percentage of cost, margin is profit as a percentage of the selling price. Selling a ₹100 item for ₹150 is a 50% markup but only a 33.3% margin. Both are shown side by side because bank and marketplace reports usually quote margin while shop pricing usually uses markup.
Yes. The Quick calculator tab is a standard four-function calculator with percent, sign flip, and memory keys, so you can check a figure without leaving the page or switching tools. Everything runs locally in your browser.