Margin · Markup · Break-even
Profit Margin Calculator
List what each sale costs you, including marketplace and payment fees, then set your price. See your real profit per sale, margin vs markup, and how many sales a month you need to cover rent and salaries.
How this works
- Margin = profit ÷ selling price. Markup = profit ÷ cost. A 50% markup is only a 33% margin, which is why they're easy to mix up.
- Profit per sale (contribution) = price before GST − costs per sale − % fees. Marketplaces and payment gateways usually charge their % on the full price the customer pays, including GST; switch that off if yours doesn't. GST on their fees can usually be claimed back as input credit. It's what each sale adds towards your fixed costs.
- Break-even sales = monthly fixed costs ÷ profit per sale. Every sale after that is profit.
- Find my price: price before GST = costs per sale ÷ (1 − target margin − % fees × (1 + GST rate)). GST is then added on top.
- GST you collect goes to the government, so it's left out of profit. Enter costs without GST if you claim input tax credit.
Margins here are before income tax. Results are estimates for planning.