MLMProfitCalcРусский

MLMProfitCalc

Margin and markup calculator

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Fictional example. All amounts are per unit sold.

Known values
Selling costs

For example, packaging and payment fees. Do not repeat costs already included in product cost. Fee rates are entered manually.

Gross margin and markup are before selling costs. A target price also refers to the gross rate.

The amount after selling costs is not net profit for the period. Fixed overhead, returns and separate tax calculations are not included. Currencies are not converted.

Margin and markup use different denominators

Gross profit per unit = selling price − product cost. Gross margin, % = gross profit ÷ selling price × 100. Markup, % = gross profit ÷ product cost × 100. Both gross rates here are before selling costs. The same percentage markup and margin produce different selling prices.

Worked example: cost 600, price 1,000

The difference is 400: a 40% gross margin and 66.67% markup. With another 50 in selling costs and a fee of 10% of price, the fee is 100 and the amount remaining is 250, or 25% of price. That is not yet net profit for the month.

Price from a target percentage

For a target gross margin: price = cost ÷ (1 − percentage ÷ 100). For a target markup: price = cost × (1 + percentage ÷ 100). At a cost of 600, a 30% gross margin requires a price of 857.15 after rounding up to cents; a 30% markup requires 780. Selling costs reduce the remaining amount but do not change the meaning of the gross target.

Which selling costs to include

Enter additional costs per unit sold and deductions as a percentage of its selling price. Do not repeat shipping or packaging already included in product cost. This is not a marketplace tariff integration, VAT calculation or tax-regime selector.

Check the expense list

Zero values and selling below cost

At a zero selling price, gross margin is undefined. At zero product cost, markup is undefined. A known price can be compared with zero cost, but a target percentage cannot determine a price from it. A price below cost produces negative rates: a loss is not replaced with zero.

Precision and limits

Amounts accept two decimal places and percentages four. A target price is rounded up to cents so rounding does not undershoot the target; fees are rounded half up to cents. Displayed percentages use two decimal places. Currencies are not converted. Fixed overhead, returns, unsold inventory and separate taxes are outside this calculation.

Calculate break-even sales

Track profit for the period

Separate profit from cash tied up in stock

Formula references

Xero: How to calculate markup

Kontur.Market: margin and markup definitions (Russian)