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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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