Profit Margin Calculator
Margin and markup are not the same. This calculator shows both, plus your break-even point and profit at any volume.
Product/Service Details
$
What it costs you to produce/deliver $
What you charge customers Business Overhead
$
Rent, salaries, software, insurance units
How many you sell per month Per Unit
Gross Profit -- Price minus cost
Gross Margin --
Markup --
Monthly Totals
Total Revenue --
Total Gross Profit --
Net Profit -- After fixed costs
Net Margin --
Break-Even Analysis
Break-Even Units -- Units needed to cover fixed costs
Break-Even Revenue -- Revenue needed to break even
Current Status -- --
Margin vs Markup: The Difference
Margin
Profit / Price
$50 profit on $100 price = 50% margin
Used for: Financial reporting, pricing strategy
Markup
Profit / Cost
$50 profit on $50 cost = 100% markup
Used for: Setting prices from cost
| If Margin is... | Markup is... |
|---|---|
| 10% | 11.1% |
| 20% | 25% |
| 25% | 33.3% |
| 30% | 42.9% |
| 40% | 66.7% |
| 50% | 100% |
| 60% | 150% |
| 75% | 300% |
Why This Matters
Common mistake: A 50% markup does not equal 50% margin. If you mark up a $50 product by 50% ($25), you sell it for $75. Your margin is only 33% ($25/$75).
Gross vs Net: Gross margin ignores overhead costs. Net margin is what actually matters—it's your real profit after everything is paid.
Break-even reality: Until you hit break-even units, you're losing money every month regardless of gross margin. Track this number.