Calculate gross margin and markup from any two values, true profit per order after platform fees, ads and returns, your break-even point and how much more you must sell after a discount.
Built and maintained by Shehzad Munir ·
Estimates only, not financial, tax or investment advice. Results depend on the figures you enter and on rules that change; check with a qualified professional before making decisions.
Calculate profit, profit margin and markup from cost and price, or find the selling price you need to hit a target margin.
Margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. A product that costs $40 and sells for $100 has a 60% margin but a 150% markup. Confusing the two leads to underpricing. This calculator shows both from your cost and price so you always price with the right number.
Add what the product or service costs you.
Enter your selling price, or switch to set a target margin.
See all three figures update instantly.
Tweak inputs to reach the margin you need.
Switch to target-margin mode, enter your cost and the margin you want to keep, and the tool tells you exactly what to charge. It's ideal for retailers, freelancers and ecommerce sellers setting prices, and for quickly checking whether a discount still leaves a healthy profit. Everything runs in your browser.
Gross profit is revenue minus cost. Gross margin is gross profit divided by revenue, and markup is gross profit divided by cost. To find the price for a target margin, divide cost by (1 minus the margin as a decimal): a $30 cost at a 40% target margin needs a price of $30 / 0.60 = $50. To convert between the two ratios, margin = markup / (1 + markup) and markup = margin / (1 - margin), so a 100% markup is always a 50% margin. Because margin can never reach 100% while markup has no ceiling, quoting a markup when a buyer or investor expects a margin makes a business look far more profitable than it is.
The most frequent mistake is adding the target margin to cost as a markup: putting 30% on a $70 cost gives $91, which is only a 23% margin. The second is leaving out costs that scale with each sale, such as payment processing fees, marketplace commissions, packaging and shipping, which quietly shrink the real margin. Work out margin on the landed cost of each unit, not just the supplier price. Finally, remember that gross margin is not net profit: rent, salaries, software and advertising still come out of what's left. Use the calculator to set a floor price, then check that the margin you keep covers those overheads at your expected sales volume.
Profit margin = (selling price − cost) ÷ selling price × 100. If you sell for $100 and it costs $60, the margin is 40%.
Margin is profit as a share of the selling price; markup is profit as a share of cost. A $60 item sold at $100 has a 40% margin but a 66.7% markup. Margins can never reach 100%, markups can.
Margin = markup ÷ (1 + markup). A 50% markup is a 33.3% margin, and 100% markup is a 50% margin. The cheat sheet in the calculator lists common conversions.
Price = cost ÷ (1 − margin). For a $30 cost and 40% margin: 30 ÷ 0.6 = $50. Choose 'Cost + margin' to calculate it.
Open Unit economics and pick your platform. Referral, transaction and payment-processing fees are filled in for you, along with shipping, packaging, ad cost per sale and returns, to show your true profit per order.
It depends on the industry. Many retailers run 20–50% gross margins, software and digital products often exceed 70%, while groceries can be under 10%. What matters most is the net margin after fees, marketing and overheads.
Break-even units = fixed costs ÷ (price − variable cost per unit). With $5,000 fixed costs, a $60 price and $22 variable cost, you need 132 sales a month.
Divide the old profit per unit by the new one. With a $100 price, $60 cost and a 20% discount, profit falls from $40 to $20, so you need twice as many sales (+100%) to earn the same.
The return on ad spend at which a sale stops losing money: price ÷ profit before ad costs. If ads return less than that, each advertised sale loses money.
No. All calculations happen locally in your browser and nothing is uploaded.
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