Profit Margin Calculator
Calculate profit, margin, markup, fees, discounts, break-even quantity and the selling price needed for a target margin.
Profit Margin Calculator: Profit Margin Calculator calculates unit profit, gross margin, markup, contribution, tax impact, break-even quantity and target selling price.
Profit Margin Calculator
About Profit Margin Calculator
Profit Margin Calculator helps price a product or service by separating cost, selling price, discount, platform fees and fixed expenses. It reports profit per unit, total profit, profit margin and markup. You can also estimate break-even quantity and calculate the selling price required to achieve a target margin after variable charges.
Margin and markup are related but not identical. Margin compares profit with selling revenue, while markup compares profit with cost. Marketplace commissions and payment fees can significantly change the amount retained, and discounts reduce revenue before profit is measured. Include all relevant variable costs such as packaging or delivery where appropriate, and use fixed-cost mode for expenses such as rent or equipment that must be recovered across sales. The output is a planning estimate and should be checked against actual accounting records, taxes, returns and overhead.
How to use Profit Margin Calculator
- 1Enter unit cost, selling price and expected quantity.
- 2Add discounts, platform fees and other per-sale costs where relevant.
- 3Enter fixed costs if you want a break-even estimate.
- 4Calculate and review profit, margin, markup and target selling price.
- 5Export the result and compare it with actual business records.
Features
Examples
Frequently asked questions
What is the difference between margin and markup?
Margin is profit divided by selling price, while markup is profit divided by cost.
Should tax be included in the selling price?
Use values consistent with how your business records revenue and tax, and confirm the treatment with your accounting rules.
What is break-even quantity?
It is the estimated number of units needed for contribution profit to cover the entered fixed costs.
Why is actual profit different from the calculator?
Returns, taxes, payment fees, wastage, overhead and unrecorded costs can change the real result.