VAT, sales tax or similar. Leave it empty if your price does not include tax.
Enter the cost and the price to see your margin.
First the tax is taken out of the price: price before tax = price ÷ (1 + tax rate). The platform fee is calculated on the price the customer pays, because that is how marketplaces and payment processors charge.
Profit per unit = price before tax − cost − fee. Margin = profit ÷ price before tax. Markup = (price before tax − cost) ÷ cost.
Example: a product costs 60 and you sell it for 100, with no tax or fee. You make 40 per unit: your markup is 66.7%, but your margin is 40%. If you set the price by adding 40% to the cost, you would sell at 84 and your real margin would be 28.6%.
Break-even point = monthly fixed costs ÷ profit per unit, rounded up. In reverse mode, the calculator solves for the price that leaves exactly the margin you ask for.
Freelance rate = (the net income you want ÷ (1 − taxes) + expenses) ÷ billable hours per month. Billable hours leave out time off and the time you do not charge anyone for: sales, admin and learning.
Step by step, with a full example: How to Calculate the Selling Price of a Product (Margin vs Markup)
Margin measures profit as a share of the selling price; markup measures it as a share of the cost. A product that costs 60 and sells for 100 has a markup of 66.7% and a margin of 40%. Mixing them up leads many businesses to earn less than they think.
Take the price before tax and subtract the cost of the product and any fees you pay to sell it. What is left is your profit per unit, before you pay fixed costs such as rent or salaries.
It depends on the industry: retail with fast-moving products often runs on low margins, while services and digital products usually need higher margins to pay for your time. Rather than chasing a universal number, compare your margin with what you need to cover your fixed costs. The break-even point tells you exactly that.
Enter the percentage in "Platform or payment fee". It is calculated on the price you charge, tax included, which is how most platforms bill. If you are also charged a flat fee per sale, add it to the cost per unit.
Divide your monthly fixed costs by the profit each unit leaves you. Enter your fixed costs under "More options" and the calculator tells you how many units you need to sell each month to avoid losing money.
Use the Freelance tab: enter the income you want, your expenses and how many hours you can realistically bill. The result is your minimum rate; on top of it, add the value you deliver and your experience.
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