Pricing · one set of numbers, every answer

What should you charge, and what survives it?

Six questions most pricing tools make you answer separately — your price, your margin, your markup, your break-even, where the money goes and what a discount really costs. Enter your costs once below and all six answer at the same time.

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The workbench

Put your product in once

Change anything on the left and watch every figure on the right move together. That is the point — a price is not one number, it is a set of consequences.

Your product or job

Per unit, or per job. Either works.
£
£
£
£
Your price
£74.17
To keep 40% margin on a unit costing £44.50.
40.0%
Gross margin
share of price you keep
66.7%
Markup
added onto cost
£29.67
Contribution
per unit after direct costs
142
Break-even
units to cover overheads
120
You sell
units a month
−£640
Monthly profit
at your volume
Where every pound of the price goes

Margin here is gross margin on direct costs. It excludes VAT, which is never yours, and corporation tax, which comes out of what is left.

A £44.50 cost sold at £74.17 is a 66.7% markup — and a 40.0% margin.
The one that costs people money

Markup and margin are not the same number

A tradesman told to "add 30%" adds 30% markup and believes he has a 30% margin. He has 23%. On £200,000 of sales that is £14,000 of profit he thought he had and does not.

What a markup really leaves you, on a £100 cost
What you addOn a £100 costMargin you getWhat you thought you had
Add 20%£120.0016.7%−3.3pts
Add 30%£130.0023.1%−6.9pts
Add 50%£150.0033.3%−16.7pts
Add 75%£175.0042.9%−32.1pts
Add 100%£200.0050.0%−50.0pts
Add 150%£250.0060.0%−90.0pts

Live — the row matching your markup is lit. Click any row to load it into the workbench.

To hit a margin, divide. Never add. For a 40% margin on a £60 cost, the price is £60 ÷ 0.60 = £100 — not £60 + 40%, which is £84 and leaves you 28.6%. The workbench above does the division for you; this table is here so you can check it in your head on site.

The question nobody runs the numbers on

What a discount actually costs you

A discount does not come off your price. It comes off your profit, and it comes off all of it. Move the discount slider in the workbench and watch the break-even volume climb — that is how much more you must sell to stand still.

Units you must sell to be no worse off than before the discount
Discount25% margin30% margin35% margin40% margin50% margin
5%150vs 120 at full price144vs 120 at full price140vs 120 at full price137vs 120 at full price133vs 120 at full price
10%200vs 120 at full price180vs 120 at full price168vs 120 at full price160vs 120 at full price150vs 120 at full price
15%300vs 120 at full price240vs 120 at full price210vs 120 at full price192vs 120 at full price172vs 120 at full price
20%600vs 120 at full price360vs 120 at full price280vs 120 at full price240vs 120 at full price200vs 120 at full price
25%∞impossible720vs 120 at full price420vs 120 at full price320vs 120 at full price240vs 120 at full price
manageablea stretchharddoubling the businessnot recoverable

Live — unit counts use your own volume, and the cell matching your margin and discount is outlined. Click any cell to try it.

Why this differs from the break-even above. The workbench shows break-even — the units needed to reach zero profit, after overheads. This table shows something else: the units needed to be no worse off than before you discounted. If you were losing money before the discount, this figure restores that same loss rather than clearing it. Two different questions, and a seller needs both.

Does your actual margin match this?

This is the arithmetic for one product. Running it across every product, every month, from your real figures rather than estimates, is the job. A half-hour call will tell you whether your reported margin and your real one agree.

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