Pricing & profit
Margin, markup, break-even, ROI and discounts.
Margin and markup are the two most confused numbers in business. These keep them clearly apart and solve for whichever one you are missing.
- Break-even How many units cover the fixed costs before anything is profit.
- Commission What a rate actually pays once the threshold is taken into account.
- Discount What you pay after one discount, or two stacked on each other.
- Markup What a markup actually leaves you, and why it is not the margin.
- Price per unit Which of two sizes is actually cheaper.
- Profit margin Margin, markup and profit from a cost and a price — and why the two percentages differ.
- ROI What came back against what went in, and what that is a year.
- Sales tax & VAT Add tax to a price, or pull it back out of one that already includes it.