Profit Margin Calculator — Margin, Markup & Selling Price
Calculate profit margin, markup, and selling price from any two numbers — including reverse pricing from a target margin and optional tax or VAT handling. Free, no signup, all client-side.
Enter your monthly fixed costs, price, and variable cost to see the break-even units and revenue, the volume you need to hit a target profit, and your margin of safety — for product sales or service revenue.
No uploads. Everything runs locally in your browser.
Our free break-even calculator turns your fixed costs, unit price, and variable cost into a clear break-even point — in units and in revenue. Sellers use it as a break-even analysis calculator to find the contribution margin, the volume needed to reach a target profit, and the margin of safety at their current sales. Service businesses can run the same analysis with variable costs as a percent of revenue. Everything runs in your browser — no sign-up, no data sent anywhere.
Example loaded: $10,000 in monthly fixed costs, a $100 price, and a $25 variable cost. Adjust the numbers to match your business.
Selling products one unit at a time? Use Units. Selling time or services where costs scale with revenue? Use Services.
Fixed costs are rent, salaries, and software you pay every month. Variable costs are the materials, packaging, and per-sale fees that scale with each unit you sell.
Leave either field at 0 to skip those results. A profit target shows the volume you need; a current volume shows whether you are above or below break-even.
Break-even volume is rounded up to the next whole unit — you can't sell a fraction of a unit, so 133.33 units of demand becomes 134 units of required sales.
Where the lines cross, revenue has just covered fixed costs and every unit after that adds profit at the contribution margin rate.
Results are estimates based on the numbers you enter. Real-world break-even points shift with taxes, shipping, marketplace fees, and demand — re-run the analysis whenever your costs change.
The break-even point is the sales volume where total revenue equals total cost — profit is exactly zero. Sell one unit less and you lose money; sell one unit more and every additional sale adds profit at the contribution margin rate. It is the single most useful number for deciding whether a product, price, or side hustle is worth continuing, because it shows the minimum you must sell before anything is left over.
The same formulas run every scenario below. Pick the closest one and load it with the quick scenario buttons above to see the full breakdown — including what you need to sell for a profit target.
| Scenario | Fixed costs | Price | Variable cost | Contribution | Break-even |
|---|---|---|---|---|---|
| Online store | $10,000/mo | $100/unit | $25/unit | $75 (75%) | 134 units = $13,400/mo |
| Coffee shop | $6,000/mo | $5.00/cup | $1.50/cup | $3.50 (70%) | 1,715 cups = $8,575/mo |
| Freelance service | $2,000/mo | - | 40% of revenue | 60% contribution rate | $3,333.33/mo in revenue |
How the online store example works
1. Contribution margin: $100 - $25 = $75 per unit. 2. Break-even units: $10,000 / $75 = 133.33, rounded up to 134 units. 3. Break-even revenue: 134 x $100 = $13,400 per month. Add a $2,000 monthly profit target and the volume becomes ($10,000 + $2,000) / $75 = 160 units — the extra 26 units are pure profit at $75 each.
Divide your monthly fixed costs by the contribution margin per unit (price minus variable cost), then round up to the next whole unit. With $10,000 in fixed costs, a $100 price, and a $25 variable cost, the contribution margin is $75 per unit, so the break-even point is 10,000 / 75 = 133.33, rounded up to 134 units — about $13,400 in monthly revenue.
Contribution margin is the money each sale leaves behind after variable costs — the amount that contributes toward fixed costs and then profit. It is the price per unit minus the variable cost per unit, and it is often shown as a percentage of price: $100 - $25 = $75 per unit, or 75% of the price. A higher contribution margin means fewer sales are needed to break even.
Break-even volume sells exactly enough to cover fixed costs and leaves $0 profit. Target-profit volume adds your profit goal to fixed costs before dividing: ($10,000 + $2,000) / $75 = 160 units. The 26 extra units beyond break-even are the sales that turn into profit.
Margin of safety is how far sales can fall before you lose money: (current volume - break-even volume) / current volume x 100. Selling 200 units against a 134-unit break-even gives a margin of safety of (200 - 134) / 200 = 33% — a third of your volume could disappear before you drop below break-even. A larger margin of safety means more cushion for slow months.
Then every sale loses money before fixed costs are even considered, so no sales volume can ever reach break-even. This calculator tells you that instead of showing a misleading number. To fix it, raise the price above the variable cost per unit, cut the variable cost below the price, or stop selling the product.
Yes. Switch to Services mode and enter your monthly fixed costs plus your variable cost rate as a percentage of revenue — the costs that scale with every job, such as contractors, materials, or payment fees. With $2,000 in fixed costs and a 40% variable rate, you need 2,000 / (1 - 0.40) = $3,333.33 in monthly revenue to break even.