Business Calculations
Calculate profit margins, markup, break-even points, and growth rates. Essential business math in one easy calculator.
How the Business Calculations works
Choose your calculation type: profit margin, markup percentage, break-even units, or growth rate. Enter your numbers and get instant accurate results.
Running a business means constant calculations. This tool handles margins, pricing, break-even, and growth math so you can make quick accurate decisions.
How it works
Tutorial
Business requires constant math: calculating profit margins when pricing products, figuring out markup to hit target profits, finding break-even points for new products, and measuring growth rates. Having these formulas at your fingertips prevents pricing mistakes and helps you make quick decisions.
This calculator handles the most common business math you’ll need daily. Learn these calculations and you’ll always know if your prices make sense, how much you need to sell to cover costs, and whether you’re improving or falling behind.
Common Business Formulas
| What to Calculate | Formula |
|---|---|
| Gross Margin % | (Revenue – Cost) ÷ Revenue × 100 |
| Markup % | (Price – Cost) ÷ Cost × 100 |
| Break-Even Units | Fixed Costs ÷ (Price – Variable Cost per Unit) |
| Growth Rate % | (New – Old) ÷ Old × 100 |
Example 1: Calculate Profit Margin
Scenario:You sell 100 units at $50 each, total costs $3,000
| Item | Amount |
|---|---|
| Revenue (100 × $50) | $5,000 |
| Total Costs | $3,000 |
| Profit | $2,000 |
| Gross Margin | 40% |
Calculation:($5,000 – $3,000) ÷ $5,000 × 100 = 40%
Example 2: Calculate Required Markup
Scenario:Product costs $30, you want to sell for $50
| Item | Amount |
|---|---|
| Cost | $30 |
| Selling Price | $50 |
| Markup Amount | $20 |
| Markup Percentage | 66.7% |
Calculation:($50 – $30) ÷ $30 × 100 = 66.7%
Note:66.7% markup equals 40% margin. Markup is based on cost, margin is based on price.
Example 3: Calculate Break-Even
Scenario:$8,000 monthly fixed costs, sell product for $50 with $30 variable cost
| Item | Amount |
|---|---|
| Fixed Costs | $8,000 |
| Price per Unit | $50 |
| Variable Cost per Unit | $30 |
| Contribution per Unit | $20 |
| Break-Even Units | 400 |
Calculation:$8,000 ÷ ($50 – $30) = 400 units
What this means:You must sell 400 units monthly just to cover your fixed costs. Every unit beyond 400 is profit.
Example 4: Calculate Growth Rate
Scenario:Revenue grew from $100,000 to $125,000
| Item | Amount |
|---|---|
| Previous Period | $100,000 |
| Current Period | $125,000 |
| Increase | $25,000 |
| Growth Rate | 25% |
Calculation:($125,000 – $100,000) ÷ $100,000 × 100 = 25%
Why These Matter
Margin vs Markup:Know the difference. 50% markup equals 33% margin. Always be clear which you’re calculating.
Break-Even:Knowing your break-even helps you set realistic sales targets and understand minimum performance needed.
Growth Rates:Track monthly and yearly to spot trends early-both good and bad.
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