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

Related calculators

Margin and markup

Profit margin compares gross profit with the selling price. Markup compares gross profit with the cost. A product can have a high markup and a lower margin, so both views are useful when setting prices.

Target price

Use the target margin field to estimate the selling price needed for a desired gross margin. Fixed costs and expected units help you check whether the price also covers overhead.