Margin Calculator Estimate profit margins, markup, break-even points, and trading requirements — with 2025 benchmarks and...

Margin Calculator

Estimate profit margins, markup, break-even points, and trading requirements — with 2025 benchmarks and risk insights.

Profit Margin

Markup vs. Margin

Break-Even

Trading Margin

Revenue ($)

COGS ($)

Operating Expenses ($)

Cost ($)

Price ($)

Industry Retail Restaurant SaaS Construction

Fixed Costs ($)

Variable Cost/Unit ($)

Price/Unit ($)

Position Size ($)

Margin Requirement (%)

Price Change (%)

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Gross Margin

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Operating Margin

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Markup

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Break-Even

Profit Waterfall

Margin vs. Markup Explained

Gross Margin** = $$\frac{\text{Revenue} - \text{COGS}}{\text{Revenue}} \times 100\%$$

Markup** = $$\frac{\text{Revenue} - \text{COGS}}{\text{COGS}} \times 100\%$$

Example** ($100 revenue, $60 COGS): • Margin = ($100 − $60) / $100 = **40%** • Markup = ($100 − $60) / $60 = **66.7%**

⚠️ **Critical**: Pricing at 40% markup ≠ 40% margin! To achieve 40% margin, markup must be **66.7%**.

✅ Pro Tip**: Use **contribution margin** = Price − Variable Cost per unit for pricing decisions.

Margin Red Flags

⚠️ Avoid these dangerous mistakes:

• Ignoring fixed costs in break-even** — $20/unit contribution ≠ $20 profit if $10K fixed
• Over-leveraging in trading** — 50% margin + 20% drop = **40% loss on equity**
• Confusing gross vs. net margin** — restaurants have 60% gross but 3% net
• Not adjusting for inflation** — 5% margin in 8% inflation = **−3% real profit**

✅ Pro Tips**:

• Target **≥50% gross** for SaaS, **≥20%** for retail, **≥3% net** for restaurants
• In trading: never use >2x leverage without stop-loss
• Review margins quarterly — COGS creep kills profitability

2025 Margin Benchmarks

Industry	Gross Margin	Net Margin
SaaS	70–85%	15–25%
Retail	20–25%	2–4%
Restaurant	60–65%	3–5%
Construction	15–20%	2–8%

📉 Break-Even Examples**:

• $10K fixed, $20/unit contribution → **500 units**
• $50K fixed, $100/unit contribution → **500 units** (higher margin → same volume, more profit)

📉 Trading Leverage Impact** (50% margin): +10% price → **+20% equity return** −10% price → **−20% equity loss**

How to Use This Calculator

➡️ Profit Margin

“$100K revenue, $40K COGS, $30K opex — what’s my net margin?” (30%)

➡️ Markup vs. Margin

“Cost $60, want 40% margin — what price?” ($100)

➡️ Break-Even

“$10K fixed, $20 contribution/unit — how many to sell?” (500)

➡️ Trading Margin

“$50K position, 50% margin, −10% move — equity loss?” (−20%)

Note: Uses exact margin formulas. Trading assumes no interest, no commissions.