Use our Margin Calculator to quickly find your profit, margin percentage, markup, and break-even price so you can set smart prices and scale with confidence.
What is a Margin Calculator?
A Margin Calculator is a practical tool that helps you determine how much profit you retain from each sale after accounting for cost of goods sold (COGS), discounts, shipping, platform fees, and fixed overhead. By entering a few key inputs—your cost per unit, selling price per unit, quantity, optional discount, fees, shipping, and overhead—you get instant clarity on gross profit, margin percentage, markup, and the break-even price per unit.
Why margin matters
Margin shows the percentage of revenue you keep after direct costs. Healthy margins protect your business from volatility, allow you to invest in growth, and give you room to run promotions without slipping into losses. Even a small improvement in margin can have a big impact on cash flow and long-term sustainability.
Margin vs. markup
Margin and markup are related but not the same. Margin is profit divided by revenue, while markup is profit divided by cost. Many pricing mistakes happen when teams confuse the two. For example, a 50% markup does not equal a 50% margin. If your cost is $10 and you sell for $20, your markup is 100% but your margin is 50%.
- Margin (%) = Profit / Revenue × 100
- Markup (%) = Profit / Cost × 100
How to use the Margin Calculator
- Choose your currency.
- Enter your cost per unit and selling price per unit.
- Set the quantity (default is 1).
- Optionally add a discount percentage for promotions.
- Enter payment or platform fees as a percent of revenue.
- Add shipping per unit and any fixed overhead costs.
- Click Calculate to see revenue, COGS, fees, profit, margin, markup, and break-even price per unit.
What the results mean
- Revenue: Selling price after discount multiplied by quantity.
- COGS: Cost per unit plus shipping and any fixed overhead.
- Fees: Payment or platform charges applied to revenue.
- Gross Profit: Revenue minus fees and COGS.
- Margin %: Profit as a percentage of revenue—great for evaluating price strength.
- Markup %: Profit as a percentage of cost—useful for setting prices from cost up.
- Break-even price per unit: The minimum unit price (before discount) to cover all costs and fees.
Tips for better pricing decisions
Use the Margin Calculator to explore scenarios before launching promotions or negotiating vendor terms. Small changes in discount, fees, or shipping can swing your profitability. If fees are a major factor (for example, marketplace or payment processor charges), try negotiating lower rates or adjusting your list price to preserve margin. For products with high shipping costs, consider tiered pricing by region or bundling items to spread shipping over multiple units.
Review fixed overhead regularly. If your overhead is rising, incorporate those changes into your pricing models so you do not erode profit unnoticed. Finally, track the difference between margin and markup in your reporting; use margin for performance analysis and markup to design target prices from your cost base.
Common mistakes to avoid
- Including sales tax in price or cost when calculating margin.
- Forgetting to factor platform or payment fees into your break-even price.
- Applying discount after fees instead of before (fees typically apply to the discounted price).
- Overlooking shipping, especially for returns or split shipments.
With clear, accurate inputs, the Margin Calculator gives you reliable metrics you can act on—so you price confidently, run profitable promotions, and grow sustainably.