Margin, markup & break-even
Gross margin, markup, break-even units and revenue.
Cost, price and margin
$
What one unit costs you.$
What you charge for one unit.Gross margin40.00%Profit ÷ selling price
Markup66.67%Profit ÷ cost
Break-even
$
Costs that stay the same at any volume: rent, salaries, insurance.$
Selling price of one unit.$
Costs for each unit made: materials, direct labor, shipping.$
Profit you want; shows the units needed to reach it.Units to sell1,0001,000.00 exactly
Revenue needed$25,000.00
Contribution margin$10.00 (40.0%)
About this calculator
Work out gross margin and markup from price and cost, and the break-even point in units and in sales dollars from fixed costs and the contribution margin per unit.
Formula
Margin = price − costprice; markup = price − costcost; break-even units = fixed costsprice − variable cost per unit
- Margin and markup use the same profit but different bases, so markup is always the larger percentage.
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