Calc Garden

Business and Work Calculators

Quick tools for pricing and trading decisions: profit margin, markup and the everyday maths behind running a small business. Fast, free and no sign-up.

Plot No. 68 · Business & Work

Profit Margin Calculator

Turn cost and sale price into profit, profit margin percent and markup percent.

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Plot No. 69 · Business & Work

Markup Calculator

Set a sale price from a cost and markup percent, with profit and resulting margin.

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Plot No. 76 · Business & Work

Freelance Day Rate Calculator

Turn a target income into the day rate and hourly rate to charge, accounting for overheads and non-billable time.

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Plot No. 77 · Business & Work

Sales Commission Calculator

Work out commission earned and total pay from base salary, sales, commission rate and quota.

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Which business calculator do you need?

Set a price, then check what it leaves you.

What you want to doCalculatorWhat it gives you
See what margin a price leavesProfit Margin CalculatorGross margin percentage and profit from cost and sale price
Set a price by adding a markup to costMarkup CalculatorSale price, profit and the margin that markup actually produces
Work out what to charge per day as a freelancerFreelance Day Rate CalculatorA day rate from target income, billable days and overheads
Check a commission payoutSales Commission CalculatorCommission on sales above quota, the effective rate and total earnings including base salary
Find the volume that covers your fixed costsBreak-Even CalculatorBreak-even units and revenue from fixed costs and unit contribution

What the business and work calculators do

This is the pricing plot. Profit margin and markup are the two ways of expressing the same gap between what something costs you and what you sell it for, and confusing them is the most expensive arithmetic mistake a small business makes. The freelance day rate calculator works backwards from a target income, billable days and overheads to the rate you would have to charge. The sales commission calculator applies a rate to the sales above a quota and adds a base salary, so a payout can be checked rather than trusted.

Margin and markup deserve the extra care because they move in different directions. Markup is profit measured against your cost, so it can exceed 100 percent. Margin is profit measured against the sale price, so it never can. A 50 percent markup sounds like a 50 percent margin and is actually 33.3 percent, and a business that prices as though those were the same is roughly a third short on every sale.

Two related tools live in the finance plot rather than here. The break-even calculator turns fixed costs and unit contribution into the volume that covers them, which is the natural next question once a price is set. The ROI calculator prices a one-off investment rather than a repeat sale. Both are linked from the relevant pages here.

Markup against the margin it really produces

Both columns describe the same sale. Markup is profit as a share of cost; margin is profit as a share of the sale price. The right-hand column uses a 40 cost, the figure the markup calculator starts from, so you can follow one row straight through.

Markup on costResulting marginSale price on a cost of 40
10%9.1%44.00
20%16.7%48.00
25%20.0%50.00
50%33.3%60.00
100%50.0%80.00
150%60.0%100.00
200%66.7%120.00

The conversion is margin equals markup divided by one plus markup. Read it the other way when you have a margin target: to hit a 50 percent margin you need a 100 percent markup, and to hit 60 percent you need 150 percent. Margin cannot reach 100 percent no matter how high the markup goes, because the profit is always a slice of a sale price that includes the cost.

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Frequently asked questions

What is the difference between margin and markup?

They share a numerator and differ in the denominator. Markup divides profit by cost, margin divides the same profit by the sale price. Sell an item costing 40 for 60 and the profit is 20, which is a 50 percent markup on cost and a 33.3 percent margin on the sale. Quoting one when you mean the other is why a business can hit its stated percentage and still miss its cash target.

What should I charge as a freelance day rate?

Start from the income you need, not from what competitors advertise. Take your target annual income, add overheads, tax and pension, then divide by the days you can realistically bill, which after admin, sales, holiday and illness is usually far fewer than the working year contains. The freelance day rate calculator lays that out step by step.

Is gross margin the same as profit?

No. Gross margin only accounts for the direct cost of what you sold. Rent, software, salaries, marketing and tax all come out afterwards, so a healthy gross margin can still leave nothing at the bottom. Use break-even to work out what volume covers those fixed costs at the margin you have set.

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