Calculator Margin, Markup and Discount Bundle
Calculate percentage margin, markup and Omnibus discount. Verify your promotion compliance with EU Directive 2019/2161 (Omnibus Directive, DLgs 26/2023).
Configure
Result
No results
Enter values and press the button to calculate.
Frequently Asked Questions
What is the difference between margin and markup?
Margin is the difference between selling price and cost, expressed as a percentage of the price: margin% = (price - cost) / price × 100. Markup is the same difference expressed as a percentage of the cost: markup% = (price - cost) / cost × 100. A product with a cost of €60 and a price of €100 has a margin of 40% but a markup of 66.67%.
What is the rule for discounted prices on Omnibus?
Directive Omnibus (EU) 2019/2161, received in Italy with DLgs. 26/2023, obliges traders to indicate the previous price as the lowest applied price within 30 days prior to promotion in promotional advertisements. The Court of Justice C-330/23 (2024) confirmed that this price must be the actual minimum value, without possibility of artificially inflating the "reference price".
How is the discount calculated according to the Omnibus directive?
Discount Omnibus is calculated as: discount% = (minimum price of last 30 days - promotion price) / minimum price of last 30 days x 100. For example, if the minimum price over the last 30 days was €80 and the promotion price was €70, the discount Omnibus is (80 - 70) / 80 x 100 = 12.5%. This value should be communicated in the promotional banner.
What is a good margin of profit for a company?
Depends strongly on the sector. In physical retail, typical gross margins vary between 20% and 50%; in SaaS software, they can exceed 70%; in restaurants, they often hover around 3-10% (net margin). As a reference for B2B: a gross margin of less than 15% is often a sign of competitive pressure; 30–60% is a healthy range for many manufacturing or distribution sectors.
How to use margins and markup to lock prices?
Starting from cost and target margin: price = cost / (1 - target margin%) e.g. for a cost of €60 and a 40% target margin: price = 60 / (1 - 0.4) = €100. vs. using markup: price = cost × (1 + markup%) = 60 × 1.6667 = €100. Both approaches yield the same final price, but the margin is preferred for performance analysis (compare product categories), while markup is more intuitive for supplier negotiations.
How is it used?
- Insert purchase cost
Unit price of product (purchase or production), excluding VAT.
- Indicate the selling price
Insert public price or B2B price after VAT - the price the customer pays.
- Add minimum bus price (optional)
If you're applying a promotion, enter the lowest price actually sold in the last 30 days to calculate the discount as required by the Omnibus directive.
- Read margin, markup, and discount
Get absolute margin, percentage margin on price, cost markup and (if applicable) Omnibus discount.
How to calculate margin, markup and omnibus price
The margin and markup calculator allows you to instantly determine the profitability of every product or service, starting from purchase cost and selling price. Calculations happen in the browser: no data is sent to external servers.
The distinction between margin and markup is crucial for pricing decisions: the percentage margin expresses what portion of the final price is profit, while the markup expresses how much above cost it was applied. Confusing the two indicators leads to pricing errors - for example, believing a 50% margin when a 50% markup (equivalent to a 33% margin) has been set.
The Omnibus module is relevant for those who offer promotions and discounts: EU Directive 2019/2161 (Omnibus), implemented in Italy with DLgs 26/2023, requires traders to indicate the minimum value applied over the past 30 days as the reference price. The CGUE C-330/23 ruling confirmed this principle across the entire EU.
Results are for informational purposes only. For complex pricing (bundles, quantity discounts, international prices, VAT management), or to verify full promotional compliance, consult a tax advisor or an e-commerce expert.
Practical example: product with a cost of 60€ and a price of 100€
- Purchase price: $60, Selling price: $100
- Margin = 100 - 60 = 40 € → Margin% = (40 / 100) * 100 = 40%
- Markup = 40/60 × 100 = 66.67%
- Minimum price for Omnibus 30 days = €80, discount for Omnibus = (€80 - €70) / €80 * 100 = 12.5% (with promotional price €70)
Vocabulary Dictionary
- Margin
- Difference between selling price and cost, expressed as a percentage of the price: margin % = ((price - cost) / price) x 100. Indicates what portion of revenue is pure profit.
- Markup
- Difference between price and cost expressed as a percentage of the cost: Markup % = ((Price - Cost) / Cost) x 100. Indicates by how much the price has increased compared to the purchase cost.
- General Direction
- Directive (EU) 2019/2161 requiring traders to indicate the reference price as the minimum price applied over the last 30 days in promotional ads, received in Italy with L. 26/2023.
- Reference Price
- Previous price indicated as the base for calculating a discount. According to the Court of Justice of the European Union (CJEU) C-330/23, it must be the lowest price applied in the 30 days preceding the promotion - not the list price.
- Net profit margin
- Net profit after all operational expenses (not just product cost). This tool calculates gross margin; to calculate net margin, you also need to subtract general expenses, marketing, logistics, and amortization.
Do you need a custom analysis?
This tool is free and informative. For in-depth analysis with AI on-prem - private data, zero cloud - contact Federico.