Understanding Markup vs. Margin
Many business owners confuse profit margin with markup. Margin is the percentage of the selling price that is profit: Margin = (Profit / Revenue) * 100. Markup is the percentage added to the cost price: Markup = (Profit / Cost) * 100.
Calculating Discounts Instantly
To calculate a discounted price, multiply the original price by (1 - Discount Rate). For instance, a 20% discount on a $150 item: 150 * 0.8 = $120.