Retail margin inputs
Example data table
Sample inputs and outcomes for quick testing.
| Unit cost | Unit price | Qty | Discount | Returns | Fee | Expected sales | Net margin |
|---|---|---|---|---|---|---|---|
| PKR 1,200 | PKR 1,800 | 50 | 10% | 3% | 2.5% | PKR 78,570 | ~ 24.9% |
| PKR 950 | PKR 1,450 | 30 | 0% | 1% | 1.8% | PKR 43,071 | ~ 31.2% |
| PKR 3,600 | PKR 4,300 | 12 | 8% | 5% | 3% | PKR 45,228 | ~ 12.0% |
Results vary with shipping, overhead, and other variable inputs.
Formulas used
- List revenue = Unit Price × Quantity
- Discount amount = List Revenue × Discount%
- Net sales before tax = List Revenue − Discount Amount
- Expected net sales = Net Sales Before Tax × (1 − Return%)
- COGS = Unit Cost × Quantity
- Other variable = (Shipping + Other Variable) × Quantity
- Payment fees = Expected Net Sales × Fee%
- Gross profit = Expected Net Sales − (COGS + Other Variable)
- Net profit = Expected Net Sales − (COGS + Other Variable + Payment Fees + Overhead)
- Gross margin% = Gross Profit ÷ Expected Net Sales
- Net margin% = Net Profit ÷ Expected Net Sales
- Markup% = (Expected Net Sales − COGS) ÷ COGS
- Break-even units = Overhead ÷ Contribution per Unit
The return model is expectation-based, useful for planning.
How to use this calculator
- Enter your unit cost, price, and expected quantity.
- Add discount, return rate, and payment fee if applicable.
- Include shipping, other variable costs, and fixed overhead.
- Press Calculate to view profit, margin, and break-even.
- Use the download buttons to export your latest results.
FAQs
1) What is the difference between margin and markup?
Margin compares profit to selling price. Markup compares profit to cost. Both help pricing, but margin is better for income planning.
2) Why do you reduce sales by return rate?
Returns reduce realized revenue and often add handling costs. This calculator uses an expected value approach to estimate planning-level profitability.
3) Does sales tax change my profit here?
By default, tax is shown for customer totals only. Many businesses collect tax and remit it, so it is not treated as profit.
4) What should I include in “fixed overhead”?
Include costs that don’t change per unit in the short run, like rent, salaries, software subscriptions, insurance, utilities, and basic admin expenses.
5) How is break-even quantity calculated?
It divides fixed overhead by contribution per unit. Contribution per unit is expected sales per unit minus all variable costs per unit.
6) Why might the recommended price show “not solvable”?
If fees plus target margin leave too little room for costs, the formula cannot find a positive price. Lower the target, reduce fees, or lower costs.
7) Can I use this for bundles or multi-item carts?
Yes. Use weighted averages for unit cost and price, or run separate calculations per product. For carts, treat one cart as one “unit.”