Profit, loss and discount calculator

Split a deal into cost, selling price, markup, margin and MRP discount. Markup is profit divided by cost. Margin is profit divided by selling price. A “25% profit” in a shop can mean either — the two percentages are not equal. VAT is a separate layer; use the VAT calculator for that.

Last updated: 2026-09-14

Cost, selling price and MRP

Cost price: What you paid the supplier, or your landed cost before you add a margin. Not the tagged MRP.
Selling price: What the customer actually pays before extra charges. After a discount, this is the net price.
MRP: The printed or tagged maximum. Discount in this tool is taken off MRP, not off cost.
Profit / loss: Selling minus cost. Negative is a loss.

A typical shop path

Cost from supplier
Markup to set a list price
Optional discount off MRP
Cash the customer pays

Markup is not margin

Markup % (on cost)

Markup % = (selling − cost) ÷ cost × 100 Selling = cost × (1 + markup % ÷ 100)

Margin % (on selling price)

Margin % = (selling − cost) ÷ selling × 100

The taka of profit is the same number. Only the divisor changes.
A 25% markup on ৳800 is a ৳1,000 selling price. Margin on that sale is 20%.

Same ৳200 profit, two percentages

Cost	Selling	Profit	Markup	Margin
৳800	৳1,000	৳200	25%	20%
৳500	৳750	৳250	50%	33.33%

If a wholesaler says “give me 25%”, ask: 25% of cost or 25% of the invoice total.

Discount is off MRP

Discount

Discount amount = MRP × discount % ÷ 100 Net = MRP − discount amount

A 15% sticker off ৳1,200 is ৳180 off, net ৳1,020.
That net can still be below cost. Optional cost on the discount tab shows the profit after the offer.

How to use it

Pick profit/loss or discount — Profit/loss needs cost and selling (or cost and a markup %). Discount needs MRP and a percent.
Read both markup and margin — If you only remember one percentage, you will argue with the supplier about a number that was never the same thing.
On a sale, enter cost on the discount tab — Then you see whether the offer still leaves a profit before VAT.

Facebook seller example

Dress cost ৳800. You want a 25% markup. Festival offer 15% off an MRP of ৳1,200.

Cost + 25% markup → selling should be ৳1,000 if you had no MRP theatre.
15% off ৳1,200 MRP → customer pays ৳1,020.
Against cost ৳800, profit after discount is ৳220 — markup 27.5%, margin about 21.6%.

The tagged MRP was higher than the markup price, so the “15% off” still beat a plain ৳1,000 list. That is merchandising, not a maths error.

Calling markup “margin”. Banks, apparel buyers and Facebook groups mix the words constantly.
Taking discount off cost. The tag is MRP.
Folding VAT into markup without saying so. The customer then cannot see the tax line.
Using this for a salary or tax return. It is a shop arithmetic helper.

FAQ

Why are markup and margin different?

Same profit, different base. Markup divides by cost; margin divides by selling price. ৳200 on ৳800 is 25% markup and 20% margin.

Is discount the same as profit percentage?

No. Discount is a cut from MRP. Profit is selling minus cost. A deep discount can wipe out profit even when the sticker looks generous.

Does this include VAT?

No. Use the VAT calculator for exclusive/inclusive tax. This page stops at cost, selling, MRP and discount.

Can I enter a loss?

Yes. If selling is below cost, the status is loss and the markup/margin percentages go negative.

Is MRP legally the maximum in Bangladesh?

Printed MRP is a consumer-protection idea for packaged goods, but practice varies by product and channel. This tool only does the arithmetic of a tagged price minus a percent.