What's your profit margin — and are you pricing it right?
Enter what a sale costs you and what you charge, and you'll see your gross profit, your gross margin, and your markup on every sale. Not sure what to charge? Enter a target margin instead and we'll tell you the price to hit it. No signup, no email — and the difference between margin and markup (the one that trips up most owners) is spelled out below.
Your gross margin is
0%
- Gross profit per sale
- $0
- Gross margin
- 0%
- Markup
- 0%
- Price to hit your target margin
- $0
What to look at first
An estimate from your own numbers. Margin and markup are plain arithmetic — profit divided by price, and profit divided by cost — not an invented figure. The point isn't the exact number; it's pricing with your eyes open, and a website that brings in and converts more of the right customers lets you hold your margin instead of discounting to compete.
Margin vs. markup — the difference that trips everyone up
No black box — it's plain arithmetic on the numbers you enter:
- Gross profit per sale = price − cost — what's left from each sale after what it cost you to deliver.
- Gross margin = gross profit ÷ price — profit as a share of what the customer pays.
- Markup = gross profit ÷ cost — profit as a share of what it cost you.
- Price for a target margin = cost ÷ (1 − target margin) — the price that leaves you that share.
Margin and markup are not the same number. A $20 item sold for $50 is a 60% margin but a 150% markup — same sale, two very different percentages. Markup can go above 100%; margin never can. Pricing off the wrong one is a classic way to leave money on the table. Want to keep your margin without racing competitors to the bottom on price? That's exactly what we work on in a free consult — no pitch.