Instantly calculate profit, gross margin and markup to make smarter pricing and negotiation decisions. Use this to set target margins or a minimum acceptable price when testing offers.
Enter the product cost (COGS).
Enter your intended selling price.
Click Calculate to see profit, margin and markup.
Use the margin result to decide the lowest acceptable offer when negotiating — set your negotiation floor so profit remains positive after fees.
Cost = $60, Selling price = $100
$100 − $60 = $40
40 ÷ 100 = 0.40 → 40.00%
40 ÷ 60 = 0.6667 → 66.67%
Note: Markup is larger than margin because it’s measured against cost, not price.
Margin shows what portion of the selling price is profit (profit ÷ selling price). Markup shows how much you add to cost to set the price (profit ÷ cost). Both matter: margin for profitability checks, markup for pricing strategy.
There’s no universal “healthy” margin — it depends on industry, model and size. Retail and grocery often run low margins; digital products and premium brands usually have higher margins. A practical approach:
To hit a target margin (for example, 20%), calculate required selling price as:
Example: For 20% margin and $60 cost → Price = 60 ÷ 0.8 = $75
Brands like Armani are interested in Batna because it helps increase margins. The logic is simple: when you reduce the discount, you directly increase your margin.
When using negotiation or make-an-offer tools, it’s critical to calculate your minimum acceptable price (your walk-away price) in advance, so you never accept offers that erode profit. This calculator helps translate margin goals into concrete price floors, making it easier to push back on discounts while protecting - and even improving - your margins.
Reduce discounts, increase margins, and never underprice a deal.
Let your customers bid their price in real time and trigger negotiation for a discount or a bundle deal
