Pricing and profit
The margin calculator shows gross margin and markup side by side, and works out the selling price you need for a target margin. Confusing the two is one of the most expensive mistakes a small business can make: adding 35% to a cost does not produce a 35% margin, it produces about 26%. The page shows the conversion table so you can price with confidence.
Covering your costs
The break-even calculator tells you how many units you must sell before your fixed costs are paid, and how many more you need for a profit target. It also shows your contribution margin ratio, which is the fastest way to see whether a price change or a cost cut will help more.
Tax and pricing
If you collect sales tax or VAT, keep it out of your margin math. Tax you collect is not revenue, it is money held for the government. Use the sales tax calculator to separate the tax from the price, then run your margins on the tax-free figure.
Using these together
A practical sequence: work out your true unit cost including shipping and payment fees, set a price with the margin calculator, then check with the break-even calculator whether the volume you expect actually covers your fixed costs. If it doesn't, the options are a higher price, lower variable costs or lower overhead, and the tools let you test each one in seconds.
Last reviewed on by the Dailycaltor team.