Finance

Margin, markup and selling price calculator

Analyze profit per sale or calculate a price that reaches your target margin or markup.

Price and profitability per sale

What do you want to calculate?

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Product, materials or labor associated with one sale.

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Additional costs: $0.00
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%

Applied to the final selling price.

Only affects suggested prices; it never lowers them.

Publicidad

Margin and markup are not the same

Both metrics show profitability but use different bases.

Margin

Divides estimated profit by selling price. It shows what share of revenue remains after direct costs.

Markup

Divides estimated profit by total effective cost. It shows how much was added above cost.

Minimum price per sale

Covers entered costs, but not necessarily rent, payroll, taxes or other business expenses.

How fees affect pricing

A percentage fee rises with price. This calculator includes it in the target price instead of adding it as a fixed cost.

Which costs to include

Include each cost directly related to a sale only once. To cover business overhead, allocate it per sale or complement the analysis with the break-even calculator.

You can also use the ROI calculator to analyze a project's full return.

Frequently asked questions

What is the difference between margin and markup?

Margin divides profit by selling price. Markup divides profit by total effective cost. A 40% margin therefore equals a 66.67% markup, not 40%.

How do I calculate a selling price from a target margin?

The calculator adds direct per-sale costs and the percentage fee, then finds the minimum price that reaches the specified margin.

How do fees affect margin?

A percentage fee grows with the selling price. It must be included in the target-price formula rather than added as a fixed amount.

Which costs should I include?

Include costs directly associated with a sale: product, materials, labor, business-paid shipping, packaging, fixed charges and other direct costs.

What happens if I sell below cost?

The calculator will show the estimated loss and minimum chargeable price needed to cover entered costs.

What is the largest discount I can offer without a loss?

It is the difference between the reference price and minimum chargeable price. It excludes overhead or taxes you did not enter.

Does the result represent net profit?

No. It is estimated profit per sale before taxes and business overhead unless you manually allocate them to costs.