All Digi HubProfit margin calculator with break-even point
Know your real margin, the difference between margin and markup, your monthly profit, how many sales cover your fixed costs, and the price that gives the margin you want. This calculator is free, needs no sign-up, and your numbers stay on your device unless you choose to send them.
How it works
Profit per item = selling price − cost. Margin = profit per item ÷ selling price × 100, and markup = profit per item ÷ cost × 100. That is why a 50% markup is only a 33% margin. Monthly profit = profit per item × items sold − fixed costs.
Break-even sales = fixed costs ÷ profit per item, rounded up to a whole sale. If the price is at or below cost, you never break even. The price for a target margin = cost ÷ (1 − target margin), so a 40% margin on a cost of 400 needs a price of about 667. The tool also shows what a 5% price rise adds each month if sales stay the same.
How to use it
- Enter the cost per item or service and your selling price.
- Enter fixed costs per month and the number of items sold.
- Set the margin you want to see the price that achieves it.
Questions
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of cost. Buying at 100 and selling at 150 is a 50% markup but a 33% margin. Mixing them up is a common cause of underpricing.
How do I calculate break-even point?
Divide your monthly fixed costs by the profit you make on each sale. With fixed costs of 50,000 and 200 profit per item, you need 250 sales a month to break even. Every sale after that adds profit.
What price do I need for a 40% margin?
Divide your cost by (1 − 0.40), which is 0.6. A cost of 400 needs a price of about 667. Enter your own cost and target margin in the calculator and it shows the exact price.
Is this calculator free?
Yes, it is free with no sign-up. The maths runs in your browser, and your numbers stay on your device unless you choose to copy the result, share it on WhatsApp, save a PDF or send it to us.
Related free tools
Run your business from one phone
Simple portals, free tools and marketing that brings customers in. One hub, set up with you on WhatsApp.