Margins and break-even

Pricing and Profit Calculators

Set prices, understand margins, and calculate the sales volume required to cover costs and reach profit targets.

Decision workflow

How to use this toolkit

  1. Calculate current gross profit and margin.
  2. Compare margin with markup to avoid pricing errors.
  3. Calculate break-even volume.
  4. Test price, volume, and cost changes together.

Key terms

Gross margin

Gross profit divided by revenue.

Markup

Gross profit divided by cost.

Contribution margin

Selling price less variable cost per unit.

Worked decision example

A product with a 50% markup does not have a 50% margin. On a $100 cost, a $150 price produces a 33.3% gross margin.

Common decision mistakes

  • Use margin and markup consistently.
  • Include all variable costs in contribution margin.
  • Test whether demand changes when price changes.
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Profit Margin Calculator

Calculate gross profit and profit margin.

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Markup Calculator

Calculate markup percentage and selling price.

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Break-Even Calculator

Calculate break-even units and revenue.

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Price Elasticity Calculator

Calculate price elasticity of demand using the midpoint method.

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Price Per Unit Calculator

Calculate cost per unit and a selling price for a target gross margin.

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Operating Margin Calculator

Calculate operating income and operating margin from revenue and operating expenses.

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Markup vs Margin Calculator

Calculate markup and gross margin from the same cost and selling price.

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Contribution Margin Calculator

Calculate contribution per unit, contribution margin ratio, and total contribution.

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Cost Plus Pricing Calculator

Calculate a selling price by applying markup to unit cost.

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Net Profit Margin Calculator

Calculate net profit and net profit margin from revenue and total expenses.

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