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Pricing Calculators
A pricing calculator sets a price that protects your profit - markup, margin, discount and break-even, in one place.
A pricing calculator is a free tool that turns cost into a selling price and shows the profit it leaves. Two ideas do most of the work: markup, which is how much you add on top of cost, and margin, which is the share of the selling price you keep as profit.
This hub keeps the two straight and covers the decisions around them - what a discount does to profit, how many units cover your costs, and the fixed cost behind each sale. For the wider money picture, see the finance hub.
All Pricing Calculators
This page links six pricing calculators. Each card opens one tool.
Which Pricing Calculator Do I Need?
Match your goal to a tool in the table below. Each row names one task and the calculator that handles it.
| If You Want To... | Use This Calculator |
|---|---|
| Add a percentage on top of cost | Markup Calculator |
| Find the profit share of the selling price | Margin Calculator |
| Work out a sale price and saving | Discount Calculator |
| See how many units cover your costs | Break-Even Calculator |
| Spread fixed costs across units | Average Fixed Cost Calculator |
| Check a reseller or dealer margin | Dealer Margin Calculator |
What Are the Main Pricing Concepts?
Pricing rests on four concepts on this page. Each answers a different pricing question.
Markup
Markup is how much you add to the cost price, expressed as a percentage of cost.
Margin
Margin is the profit you keep as a share of the selling price, always lower than the equivalent markup.
Discounting
Discounting reduces the price to drive sales, and it comes straight out of margin.
Break-Even
Break-even is the sales volume at which total revenue exactly covers total cost.
What Is the Difference Between Markup and Margin?
Markup and margin describe the same profit from two angles. Markup measures profit against cost, and margin measures it against the selling price.
A 50 percent markup is only a 33 percent margin, because the selling price is larger than the cost. Quoting one when you mean the other is a common pricing error, so use the right calculator for the question.
Pricing Concepts Compared
| Concept | What it measures | Formula | Use it to |
|---|---|---|---|
| Markup | Profit as a percent of cost | (Price - Cost) / Cost x 100 | Set a price from your cost |
| Margin | Profit as a percent of price | (Price - Cost) / Price x 100 | See how much of each sale is profit |
| Discount | Reduction from the list price | Discount / List price x 100 | Plan a sale without killing margin |
| Break-even | Units needed to cover costs | Fixed costs / (Price - Unit cost) | Know the minimum you must sell |
Markup and margin describe the same profit from different angles, so a 50 percent markup is only a 33 percent margin. Always confirm which one a price is quoted in before you compare two offers.
What Do the Key Pricing Terms Mean?
Six terms decide what a price earns. Each definition below states the term in one line.
- Cost Price
- Cost price is what it costs you to make or buy the item, before any profit is added.
- Selling Price
- Selling price is the price the customer pays, made up of cost plus profit.
- Markup
- Markup is profit as a percentage of the cost price.
- Margin
- Margin is profit as a percentage of the selling price, always lower than the markup for the same profit.
- Break-Even Point
- Break-even point is the number of units at which revenue exactly covers fixed and variable costs.
- Fixed Cost
- Fixed cost is a cost that does not change with output, such as rent, spread across every unit sold.
Frequently Asked Questions
What is a good profit margin?
A good profit margin depends on the industry: retail often runs 5 to 10 percent net, while software and services run much higher. A healthy gross margin leaves enough after overheads to reinvest and to absorb discounts.
What is cost-plus pricing?
Cost-plus pricing sets the price by adding a fixed markup to your unit cost. It is simple and guarantees a margin, but it ignores what customers will actually pay, which value-based pricing captures.
How do I price a product for profit?
Start from your total cost per unit, add the markup that hits your target margin, then check the result against competitor prices and customer value. The markup and margin calculators above turn each step into exact numbers.
What Is the Difference Between Markup and Margin?
Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. For the same profit, the margin figure is always the smaller of the two.
How Do I Calculate a Selling Price?
Add your desired markup to the cost price, or work back from a target margin. The markup and margin calculators do both.
Does a Discount Reduce My Margin?
Yes, directly. A discount comes straight off profit, so a small discount can wipe out a large share of a thin margin.
What Is the Break-even Point?
The break-even point is the number of units you must sell for revenue to cover all costs. Below it you make a loss; above it you make a profit.
Do These Calculators Store My Figures?
No. Each calculator runs in your browser, and nothing is sent anywhere unless you save a result, which stays on your device.
Sources: Investopedia on markup versus margin, and the US Small Business Administration on pricing.
Author
Shakeel Muzaffar is the Founder and Editor-in-Chief of MultiCalculators.com, bringing over 15 years of experience in digital publishing, product strategy, and online tool development. He leads the platform's editorial vision, ensuring every calculator meets strict standards for accuracy, usability, and real-world value. Shakeel personally oversees content quality, formula verification workflows, and the platform's commitment to publishing tools that are genuinely useful for students, professionals, and everyday users worldwide.
