Margin Calculator
Calculate profit margins, markup percentages, and pricing strategies. Determine optimal pricing for your products and services.
Margin & Markup Calculator
Results
Profit Margin
33.33%
Profit: $25.00
Break-even Point
40 units
At current margin
Total Revenue (100 units)
$7,500.00
Total Profit: $2,500.00
Margin vs Markup Comparison
| Cost | 25% Margin | 25% Markup | 50% Margin | 50% Markup |
|---|---|---|---|---|
| $10 | $13.33 | $12.50 | $20.00 | $15.00 |
| $25 | $33.33 | $31.25 | $50.00 | $37.50 |
| $50 | $66.67 | $62.50 | $100.00 | $75.00 |
| $100 | $133.33 | $125.00 | $200.00 | $150.00 |
How Margin and Markup Work
Profit Margin Formula
Profit margin is calculated as a percentage of the selling price:
Margin % = (Selling Price - Cost) / Selling Price × 100
Price = Cost / (1 - Margin%)
Price = Cost / (1 - Margin%)
Example: Cost $50, Price $75 = ($75-$50)/$75 = 33.33% margin
Markup Formula
Markup is calculated as a percentage of the cost:
Markup % = (Selling Price - Cost) / Cost × 100
Price = Cost × (1 + Markup%)
Price = Cost × (1 + Markup%)
Example: Cost $50, Price $75 = ($75-$50)/$50 = 50% markup
Pricing Strategy Tips
- ✓Research competitor pricing before setting margins
- ✓Consider value-based pricing for unique products
- ✓Factor in all costs including overhead and labor
- ✓Test different price points to find optimal margin
- ✓Use psychological pricing ($9.99 vs $10.00)
- ✓Consider volume discounts for bulk purchases
- ✓Monitor margins regularly and adjust as needed
- ✓Account for seasonal demand fluctuations
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