Profit Margin Calculator
Enter any two of cost, selling price, margin % and markup % and the other two are worked out. Optional per-unit expenses give net profit and net margin, monthly overhead gives break-even units, and a discount slider shows the profit you give up. Amounts are shown in dollars; the formulas are currency-agnostic.
Runs in your browser
Free, no sign-up. Runs entirely in your browser. Nothing you enter is uploaded or stored by SMNIFY.
Profit Margin Calculator
Link price, cost, margin, and markup while modeling expenses and discounts.
Four-Way Pricing Inputs
Enter any two absolute-compatible values. The two most recent fields drive the calculation.
Net Profit Expenses
Add optional per-unit operating expenses to separate gross and net margin.
Break-Even & Target Price
Estimate required sales volume and ideal price for a target profit amount.
Margin
50.00%
Profit as a percentage of selling price.
Gross Profit
$50.00
Revenue minus cost, before operating expenses.
Net Profit
$34.00
Expenses: $16.00
Net Margin
34.00%
Net profit divided by revenue.
Discount Impact Simulator
Test how promotional discounts affect final profit in real time.
Discounted Price
$90.00
Discounted Net Profit
$24.00
Discounted Margin
26.67%
Profit Lost
$10.00
Break-Even Point
74
Units needed to cover $2,500.00 in fixed monthly overhead.
Ideal Selling Price
$96.00
Ideal margin: 31.25%
Ideal markup: 60.00%
Margin measures profit relative to selling price. It answers what percentage of revenue becomes profit.
Markup measures profit relative to cost. It answers how much was added on top of cost.
Margin 50.00%, markup 100.00%.
Need this workflow inside your product?
We build calculators, converters and processing steps like this one directly into your web or mobile product, with your rules and branding.
How to use the Profit Margin Calculator
- Enter two of the four pricing fields (cost, revenue, margin %, markup %). The two you edited most recently drive the calculation; the other two fill in automatically and are shown without being editable sources.
- Switch between Margin View and Markup View to choose which percentage is highlighted. Both are always calculated.
- Add per-unit shipping, marketing and transaction fees. These are subtracted from gross profit to give net profit and net margin.
- Enter fixed monthly overhead to get break-even units, and a desired profit per unit to get the ideal selling price.
- Move the discount slider (0 to 80%) to see discounted price, net profit, margin and profit lost.
- Use Copy summary to put the results on your clipboard as plain text.
Worked example
Sample data
Cost: 50.00 Revenue: 100.00 Shipping 5.00, marketing 8.00, fees 3.00 (per unit) Fixed monthly overhead: 2,500 Discount: 10% Desired profit per unit: 30
Gross profit: 50.00 (margin 50%, markup 100%) Operating expenses: 16.00 Net profit: 34.00 (net margin 34%) Break-even: 74 units At 10% off: price 90.00, net profit 24.00, margin 26.67% Ideal selling price: 96.00 (margin 31.25%, markup 60%)
Break-even is ceil(2,500 / 34) = 74 units, rounded up because a fraction of a unit cannot be sold. Ideal price is 50 + 16 + 30 = 96. The same 50 profit on 100 is 50% margin but 100% markup.
How it works
Margin vs markup
Margin is profit as a share of the selling price; markup is profit as a share of cost. The same sale always has a higher markup than margin, so a 50% markup is only a 33.3% margin.
Margin must stay below 100%, because profit cannot exceed the price. The tool shows an error rather than a result if you enter 100% or more, or a markup of -100% or less.
Margin % = (Revenue - Cost) / Revenue x 100 Markup % = (Revenue - Cost) / Cost x 100 Revenue from cost and margin = Cost / (1 - Margin %)
Net profit and break-even
Shipping, marketing and transaction fees are treated as per-unit costs, not monthly totals. Net profit per unit is gross profit minus those three.
Break-even divides fixed monthly overhead by net profit per unit. If net profit per unit is zero or negative, no number of sales covers the overhead and the tool shows a dash instead of a number.
Net profit = Revenue - Cost - (Shipping + Marketing + Fees) Break-even units = ceil(Fixed overhead / Net profit)
Discount and ideal price
The discount reduces the selling price only; cost and per-unit expenses stay the same, so a discount hits profit one-for-one. The ideal selling price is cost plus expenses plus the profit per unit you ask for, with the resulting margin and markup shown beside it.
Discounted price = Revenue x (1 - Discount %) Ideal price = Cost + Expenses + Desired profit
Inputs, outputs and limits
Inputs
- Any two of cost, selling price, margin %, markup %
- Per-unit shipping, marketing and transaction fees
- Fixed monthly overhead
- Desired profit per unit
- Discount percentage (0 to 80)
Outputs
- Margin and markup
- Gross profit, net profit and net margin
- Break-even units
- Discounted price, profit and margin
- Ideal selling price with its margin and markup
- Plain-text summary you can copy
Limits
- Per-unit model: one product, constant cost and price, no volume pricing
- Overhead is monthly; expenses are per unit
- Amounts are displayed with a dollar sign; no currency conversion, tax or VAT is applied
- Break-even ignores timing, returns and cash flow
Processing
- Runs entirely in your browser. Nothing you enter is uploaded or stored by SMNIFY.
Frequently asked questions
What is the difference between margin and markup?
Margin divides profit by the selling price; markup divides profit by cost. A product costing 50 and selling for 100 has a 50% margin and a 100% markup.
Which two fields does the calculator use?
The two pricing fields you edited most recently. Typing a third replaces the oldest one, and clearing a field drops it. The remaining two are calculated.
Are shipping, marketing and fees per unit or monthly?
Per unit. Put monthly costs such as rent or salaries in Fixed Monthly Overhead instead, otherwise net profit and break-even will be wrong.
Why does break-even show a dash?
Net profit per unit is zero or negative, so selling more units never covers the fixed overhead. Raise the price or cut cost and expenses.
Does it work in rupees, euros or other currencies?
The maths is the same in any currency, but the displayed symbol is a dollar sign and no tax, VAT or GST is applied. Use the GST/VAT calculator for tax.
Does the discount change my cost?
No. The discount lowers only the selling price, so each discounted sale loses exactly the discount amount in profit.
Need this workflow inside your product?
We build calculators, converters and processing steps like this one directly into your web or mobile product, with your rules and branding.