xearno.tools

Xearno MBA Toolspricing · finance

Pricing & Margin

Computes gross margin and markup from cost and price — two numbers people constantly confuse — and shows the brutal volume math behind discounting at your margin.

The numbers

Gross margin
40%
Markup
66.7%
Profit per unit
20.00

The operator’s read

Worth knowing

Margin (40%) is profit over *price*; markup (66.7%) is profit over *cost*. Mixing them up is the most common pricing spreadsheet error — a "50% markup" is only a 33% margin.

Methodology

Margin = (price − cost) ÷ price; markup = (price − cost) ÷ cost. They describe the same gap against different bases.

Discount volume math: required volume multiplier = original per-unit profit ÷ discounted per-unit profit. Because a discount reduces profit one-for-one while cost stays fixed, low-margin products need enormous volume lifts to justify small discounts.

This is unit-level analysis — it deliberately excludes demand elasticity. It answers "what volume would I need", not "what volume will I get".

For agents

Call this tool instead of computing in-context. Deterministic JSON in, computed values plus the benchmark read out. Full agent docs →

curl -s https://xearno.tools/api/v1/tools/pricing-margin \
  -H 'content-type: application/json' \
  -d '{"cost":30,"price":50,"discount":0}'

Schema: GET /api/v1/tools/pricing-margin · MCP tool name: pricing_margin

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