Calculator for your business · 1 minute

Markup and Margin Calculator

Enter your cost and price — or a target markup or margin. Get everything else, your profit per unit, and how many sales you need to cover your fixed costs.

Materials, packaging, shipping — everything one sale costs you
Rent, software, ads — for break-even
Your result
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Your result—↓
The details
01

Markup vs margin

Markup is based on cost: (price − cost) ÷ cost. Margin is based on price: (price − cost) ÷ price. That’s why markup is always the bigger number: a 100% markup is a 50% margin, and a 50% markup is a 33% margin.

To con­vert: margin = markup ÷ (1 + markup); markup = margin ÷ (1 − margin).

100% = 50%
a 100% markup is a 50% margin: an item that costs $10 sells for $20
02

Break-even

Fixed costs — rent, soft­ware, ads — don’t change with how much you sell. To cover them you need fixed costs ÷ profit per unit in sales. Ev­ery­thing above that is profit before tax.

03

What’s not included

Margin here is before taxes, mar­ket­place fees and card pro­cess­ing. If you sell on Etsy or take cards, add those per­cent­ages to your cost.

How we calculate

Markup = (price − cost) ÷ cost. Margin = (price − cost) ÷ price. Price from markup = cost × (1 + markup); from margin = cost ÷ (1 − margin). Break-even = fixed costs ÷ profit per sale.

Everything runs in your browser: the numbers you enter are not sent or saved anywhere. Only your chosen currency is remembered on this device.

One step

If you sell a service rather than a product, start with the hourly rate calculator.

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What Your Work Is Really Worth

Common questions

What’s the difference between markup and margin?

Markup is based on cost, margin on price. A 100% markup equals a 50% margin.

How do I price for a target margin?

Price = cost ÷ (1 − margin). For a 40% margin on a $6 cost, charge $10.

What is break-even?

The number of sales that covers your fixed costs: fixed costs ÷ profit per sale.

This is a calculation based on your inputs and assumptions, not financial, tax or legal advice.

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