Profit Margin & Markup Calculator

Optimize selling prices, profit margins, retail markups, and calculate your monthly break-even point

Pricing & Cost Inputs

Cost of Goods (Unit Cost)

Selling Price (Revenue per Unit)

Sales Tax / Payment Gateway Fees (%)

Estimated gateway fee, sales tax, or commission deduction

Monthly Fixed Expenses (Rent, Software, Salaries)

Set Price by Desired Net Margin:

Profitability Analysis

Net Profit:

$40.00

After cost & taxes

Net Profit Margin

40%

Gross Margin: 50%

Pricing Markup

100%

Multiplier: 2x Cost

Monthly Break-Even

50 units

$5,000.00 / mo revenue

Price Distribution per Unit

Cost (50%)

Fees

Profit (40%)

Cost: $50.00Fees/Tax: $10.00Net Profit: $40.00

Markup vs. Profit Margin: What is the Difference?

What is Margin?

Margin is the percentage of the final selling price that is profit: Margin = ((Revenue - Cost) / Revenue) * 100. If you sell an item for $100 that cost $60, your profit is $40 and your margin is 40%.

What is Markup?

Markup is the percentage added to the cost price to determine selling price: Markup = ((Revenue - Cost) / Cost) * 100. For the same item ($60 cost, $100 price), the markup is 66.7%.