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Category Business & Trade

Item Details

Unit Cost ($)

Selling Price ($)

Desired Margin (%)

Break-even Assistant (Optional)

Fixed Costs (Shipping/Tax/Ads)

Cost Fixed Profit

Gross Margin: -

Markup: -

Gross Profit: -

            Net Profit:
            -
          

Paste data: Cost, Price (one per line)

Cost	Price	Margin %	Profit

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About

Pricing strategy is the backbone of retail profitability. A common pitfall for new businesses is confusing "Markup" with "Gross Margin". While Markup is the percentage added to the cost, Margin is the percentage of the selling price that is profit. Confusing these two can lead to pricing items too low and losing money on overheads.

This tool ensures precision by calculating the bidirectional relationship between Cost, Margin, Markup, and Revenue. It includes a Break-even Assistant to factor in fixed costs (shipping, ads, fees) and a Bulk Mode for processing entire inventory lists instantly.

Formulas

The relationship between Margin (M) and Markup (K) is defined as:

M = K1 + K

To find the Selling Price (P) required to maintain a specific Margin given a Cost (C):

P = C1 − M

Reference Data

Metric	Formula	Description
Gross Margin (%)	(P − C) ÷ P	Profit as a % of Revenue.
Markup (%)	(P − C) ÷ C	Profit as a % of Cost.
Selling Price	C ÷ (1 − Margin)	Price needed to achieve Margin.
Net Profit	P − C − F	Includes Fixed Costs (F).

Frequently Asked Questions

Markup is calculated on the Cost Price (e.g., if you buy for $100 and sell for $150, Markup is 50%). Margin is calculated on the Selling Price (e.g., of that $150, $50 is profit, so Margin is 33.3%). Margin is always lower than Markup.

Click the "Bulk Mode" tab. Paste your data in CSV format (Cost, Price) or (Cost, Desired Margin), one item per line. The tool will generate a table with calculated metrics for every item.

This happens when Fixed Costs (shipping, platform fees, advertising) exceed the Gross Profit. Use the "Break-even Assistant" in this tool to input these extra costs and find your true profitability.