Free Finance & Planning tool

Pricing & Margin Calculator

Markup and margin use different denominators. See both side by side and calculate the price needed for your target gross margin.

Your result

Use the example or enter your figures, then calculate.

Gross margin does not include fixed overhead, taxes or customer acquisition.

Gross margin = (price − cost) ÷ price. Markup = (price − cost) ÷ cost. Target price = cost ÷ (1 − target margin).

No. Markup compares profit with cost; margin compares it with selling price.

A 100% margin cannot be reached with a positive direct cost.

Estimate how many months your cash lasts using monthly revenue, costs and one-off spending.

Find how many sales are needed to cover fixed and per-unit costs.

Compare customer lifetime gross profit with acquisition cost.

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