Free interactive tool

Profit Margin & Pricing Calculator

Estimate gross margin, operating profit, break-even revenue, and target-margin pricing for your small business.

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Your inputs

Use figures from the same accounting period. This planning tool separates direct costs from operating expenses and models a simplified break-even point and target-margin price. Results update immediately in your browser.

Your results

Download a copy of the inputs and calculated results for your own records.

Gross profit

$10,500.00

Revenue minus direct costs.

Gross margin

42.0%

Gross profit as a share of revenue.

Markup on direct costs

72.4%

Profit compared with direct costs; different from margin.

Estimated operating profit

$4,300.00

Gross profit minus entered operating expenses.

Operating margin

17.2%

Estimated operating profit as a share of revenue.

Break-even revenue

$14,761.90

Revenue needed to cover entered operating expenses if gross-margin rate stays stable.

Break-even units

148

Approximate units based on average revenue per unit and current margin.

Price per unit at target margin

$96.67

Simplified price based on average direct cost per unit.

How to use these estimates

  • Gross margin compares gross profit with revenue; markup compares profit with cost.
  • Break-even revenue assumes your gross-margin rate remains stable as revenue changes.
  • The target price is simplified and does not account for demand, taxes, discounts, or different service mixes.

These tools provide general estimates based on the values entered. Accounting treatment and business definitions vary. Use a qualified professional for financial, accounting, or tax decisions. Values are processed in your browser and are not submitted to Stellora.