Pricing tool

Margin, markup, and what to charge.

Put in what it costs you and what you sell it for. Get profit, margin and markup instantly — then work backwards from the margin you actually want to the price that delivers it.

  • Free, no sign-up
  • Margin and markup
  • Works both directions

Profit margin calculator

Free
60.00Profit per unit
60.0%Gross margin
150.0%Markup

Margin is profit as a share of the price. Markup is profit as a share of the cost. They are different numbers for the same sale, and mixing them up is how a business quietly underprices itself.

Work backwards from a target
133.33Price needed
+33.33Price change
6,000.00Monthly profit now
9,333.33At target margin
Runs entirely in your browser. Nothing is uploaded.

Worth knowing

Pricing without guessing.

  1. 01

    Margin and markup are not the same number

    A 50% markup on a $40 cost gives a $60 price — but that is a 33.3% margin, not 50%. Quote a client "50%" while thinking markup and price on margin, and every unit you sell is quietly worth a third less than you planned. The calculator shows both so the ambiguity disappears.

  2. 02

    Gross margin is not profit

    This tool works in gross margin: price minus the direct cost of the thing. Rent, salaries, software and marketing all come out of what is left. A healthy-looking 60% gross margin can still lose money once fixed costs land, which is what the break-even calculator is for.

  3. 03

    Small price moves beat large volume pushes

    Because a price increase is almost pure margin, raising price by 5% typically adds more profit than selling 5% more units — the extra units carry their own costs, the extra price does not. Use the target-margin field to see the size of the move before deciding it is impossible.

Questions

About this tool.

Margin = (price − cost) ÷ price × 100. A $100 item costing $40 has $60 profit and a 60% margin. Note the divisor is the price, not the cost.
Markup = (price − cost) ÷ cost × 100. The same $100 item costing $40 carries a 150% markup. Markup is always the larger of the two numbers.
It depends entirely on the model: physical retail often runs 25–50%, agencies and services 40–70%, software far higher because the cost of one more copy is near zero. The useful target is one that covers your fixed costs with room left, which is a break-even question rather than a benchmark question.
No. Work in figures excluding sales tax or VAT, because that money is collected on behalf of the tax authority and was never margin. Use the VAT calculator to strip it out of a gross figure first.

Pricing is a strategy problem.

If the numbers only work at a volume you cannot reach yet, the model needs the attention — not the spreadsheet.

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