Small pricing and tax mistakes add up. These guides cover two of the most common: the difference between margin and markup (a 50% markup is only a 33% margin) and how sales tax works across states, including base rates, the five states without one and the formulas to add or remove tax from a price. Find more in the business and everyday calculators. Start with margin vs markup.
Simple payback is investment ÷ annual cash flow: 4.2 years. Discounting at 8% stretches it to 5.3 years.
Read more about Payback Period and Discounted Payback: How Fast Does an Investment Return Your Money?Break-even units = fixed costs ÷ (price − variable cost). Here that is 667 units or $26,667 of revenue a month.
Read more about Break-Even Analysis: How Many Units or How Much Revenue You Need to Cover CostsRevenue $500,000 turns into $200,000 of gross profit, $80,000 of operating profit and $52,500 of net profit. Each margin answers a different question.
Read more about Gross Margin vs Operating Margin vs Net Margin: What Each Tells YouSuccessive discounts multiply: 0.80 × 0.90 = 0.72, so 20% plus 10% off is 28% off. Here is the formula and a table of common combinations.
Read more about Successive Discounts: Why 20% Off Plus 10% Off Is Not 30% OffPercent change = (new − old) ÷ old × 100. A 20% loss needs a 25% gain to get back to even. Here are the formulas and the mistakes to avoid.
Read more about Percentage Increase and Decrease: Formulas, Examples and the 20% TrapMixing up margin and markup is the most common pricing error in small business. A 50% markup does not give a 50% margin. Here are the formulas and a table that converts one to the other.
Read more about Margin vs Markup: The Difference, the Formulas and a Conversion TableThere is no national sales tax, so the rate depends on where you buy. Here are the base state rates, the states without one, how local taxes change the total and the formulas to add or remove tax.
Read more about Sales Tax by State: Base Rates, No-Tax States and How to Calculate Total Tax
