Margin Rate Calculator

Calculate profit margin, markup, selling price, cost, gross profit, and target price for products or services.

Profit margin

51.9%

Gross profit divided by selling price

Markup

107.9%

Gross profit divided by cost

Gross profit

$4,920.00

120 units before fixed costs

Net profit

$3,720.00

After fixed costs

Pricing inputs

Enter unit economics, expected volume, and the fixed cost you want this item to cover.

Profit per unit

$41.00

Selling price minus unit cost

Revenue

$9,480.00

Selling price multiplied by units

Target price

$84.44

Price needed for a 55% margin

Break-even volume

30 units

Units needed to cover fixed cost

Discounted price

$71.10

10% off the current price

Discount scenario profit

$3,972.00

Gross profit after the discount

Minimum price for fixed cost

$48.00

Unit price needed to cover cost and fixed overhead at this volume

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What is the margin rate and markup calculator?

This calculator analyzes product profitability from selling price and cost. It separates margin rate from markup rate, adds break-even analysis, compares multiple products, and can reflect VAT and income tax to estimate after-tax net profit.

Margin and markup formulas

Core formulas

  • Margin rate = (selling price - cost) / selling price x 100.
  • Markup rate = (selling price - cost) / cost x 100.
  • If selling price is KRW 10,000 and cost is KRW 6,000, margin rate is 40% and markup rate is about 66.7%.
  • A product with 40% margin has about 66.7% markup, while 100% markup, or selling at twice the cost, means 50% margin.

Feature logic

  • The calculator gives S to F margin grades and compares with average margins across 10 industries.
  • Break-even mode uses monthly fixed costs such as rent and labor plus variable cost rate to calculate break-even quantity and revenue.
  • Contribution margin and contribution margin ratio are calculated automatically.
  • Product comparison computes weighted-average margin and warns about products below 20% margin.

Benchmarks and scenarios

Grade table and industry references

  • S grade is 50% or higher, A is 40% to 49%, B is 30% to 39%, C is 20% to 29%, D is 10% to 19%, and F is below 10%.
  • Industry averages in the source include service 70%, restaurants 65%, fashion 55%, retail 25%, and wholesale 15%.
  • For a cafe menu, an americano with cost KRW 800 and selling price KRW 4,500 has margin about 82% before fixed costs.
  • For a discount event, a KRW 29,000 T-shirt discounted 30% sells for KRW 20,300; with KRW 12,000 cost, margin falls to about 41%.
  • A store with monthly rent KRW 2,000,000 and labor KRW 3,000,000 should use break-even analysis before opening.
  • VAT at 10% and income tax can make take-home profit lower than apparent gross margin.