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Free toolSales and pricing

What does each sale leave you?

Type what an item costs you and what you charge. See the profit, the margin and the markup side by side, or work back from the margin you want to the price.

Runs in your browser. Nothing you type is sent to Runner.

Used when you pick “The margin I want”.

Price
10.00
Profit on each sale
4.00
Margin
40%
Markup
66.7%

How it works

  1. Pick whether you know your price, or the margin you want.

  2. Type the item's cost, and the price or the margin.

  3. Read the profit, margin and markup. Change a number and they follow.

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Questions about the Profit Margin Calculator

What is the difference between margin and markup?

Both start from the same profit. Margin divides it by the price, so it says how much of each sale you keep. Markup divides it by the cost, so it says how far above cost you priced. An item that costs 6 and sells for 10 has a 40% margin and a 66.7% markup.

What should I count as the cost?

Everything it takes to put one item in a customer's hands: what you paid for it or its ingredients, packaging, and any per-item fee such as a card or delivery commission. Rent and wages are fixed costs; the break-even calculator handles those.

How is the price for a target margin worked out?

Price equals cost divided by one minus the margin. For a cost of 6 and a 40% margin, that is 6 divided by 0.6, which is 10.

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