Free Business Margin Calculator — Gross Margin, Markup & Break-Even
Understanding your profit margins is the foundation of a sustainable business. Whether you are a retailer, e-commerce seller, manufacturer or service provider, knowing your gross margin, markup rate and break-even point is essential for setting prices and planning growth.
Enter your cost and selling price to instantly see the gross margin, markup rate and multiplier. Add your fixed costs and monthly sales volume to also calculate your monthly profit and the exact number of units you need to sell to break even.
Key Metrics Calculated
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Gross margin
Profit per unit in euros and as a percentage of the selling price.
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Markup rate
The percentage added on top of cost to arrive at the selling price.
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Price multiplier
Retail coefficient — the multiplier applied to cost to get the selling price.
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Break-even point
Units needed per month to cover all fixed costs and reach zero net profit.
Frequently Asked Questions
What is the difference between margin and markup?▼
Margin is calculated on the selling price: Margin = (Price - Cost) / Price × 100. Markup is calculated on cost: Markup = (Price - Cost) / Cost × 100. A 50% markup does NOT equal a 50% margin. They are different calculations.
What is a good gross margin?▼
It depends on the industry. SaaS businesses typically target 70%+, e-commerce 40-60%, retail 30-50%, and manufacturing 25-40%. The key is that your margin must be sufficient to cover all fixed operating costs and generate net profit.
How do I calculate my break-even point?▼
Break-even units = Fixed Costs ÷ (Price - Variable Cost per unit). Our calculator shows this automatically if you enter your fixed costs and sales volume.
What does the multiplier (markup coefficient) mean?▼
The multiplier is the ratio of selling price to cost. A multiplier of 2.5 means the selling price is 2.5 times the cost. It is used in retail pricing (e.g. buy for €40, sell for €100 = ×2.5 coefficient).
Can I calculate net margin with this tool?▼
Our tool calculates gross margin, markup, and monthly profit based on the data you enter. For net margin, you would also need to account for fixed operating expenses beyond the cost of goods sold.
Frequently Asked Questions