Margin is calculated as a percentage of the selling price (Profit / Selling Price), whereas markup is calculated on the cost price (Profit / Cost Price). Margin is standard in business accounting.
Yes, it computes your desired pre-tax selling price first, and then adds applicable GST so you can quote the final all-inclusive price to your customer.
The calculator adds your cost price and overheads to get the total cost, then applies your chosen margin (or markup) to get the pre-tax selling price, and finally adds GST to give the amount your customer pays.
Margin directly tells you what percentage of every rupee of sales is profit. Markup looks bigger than the equivalent margin and can cause you to underprice your product after discounts and GST.
Yes. Packing, shipping, platform commissions and other per-order overheads should be folded into the cost before applying margin, otherwise your profit gets silently eroded.
Break-even is the price where total revenue exactly equals total cost, i.e. margin is 0%. Anything above break-even contributes to profit. Use the calculator to see your break-even and minimum healthy margin together.
Every product and market is different. If you want a second opinion on your pricing structure, email rautprajwal36@gmail.com with your cost details and we will review it with you.