Cost per Mille Calculator

Both measures use profit in the numerator, but they divide by different amounts. Confusing markup with margin can make a selling price miss the intended profitability target.

A target margin measures profit as a share of the selling price. Solving for that price requires division by one minus the margin, rather than applying the same percentage as a markup.

When unit cost stays unchanged, a price reduction directly compresses the gap between price and cost. Profit can fall much faster than the selling price.