Price calculator
Work out what to charge to make the profit you want — with margin and markup explained.
The price calculator tells you what to charge for something, given what it cost you and how much profit you want. Open it from Tools → Price calculator.
Margin or markup — the key choice
"10% profit" can mean two different prices. The calculator asks which one you mean.
| You're thinking… | Choose | Cost 300 → price |
|---|---|---|
| "Add 10% to what I paid" | Markup | 330.00 — profit 30 |
| "10 of every 100 I take in should be profit" | Margin | 333.33 — profit 33.33 |
Markup — profit as a share of your cost
Add the percentage on top of what you paid:
Price = cost × (1 + markup)
= 300 × 1.10
= 330The profit, 30, is 10% of the cost. It's only 9.09% of the 330 selling price.
Margin — profit as a share of the price
The profit has to be 10% of the selling price. That means your cost is the other 90% of the price:
Price = cost ÷ (1 − margin)
= 300 ÷ 0.90
= 333.33Check it: 10% of 333.33 is 33.33, and 333.33 − 300 = 33.33. The profit is exactly 10% of the price.
Accountants and profit reports use margin, which is why the calculator starts there. If you simply add a percentage on top of cost, choose Markup.
Use the calculator
Start from a product (optional) — pick one of your products to bring in its cost. If it has no cost price saved, you'll be asked to enter it.
Cost per unit — what one item cost you.
Profit measured as — choose Margin, Markup or Fixed amount (a set amount of money per item, whatever the cost).
Enter your desired margin, markup or profit per unit.
Tax (%) — starts at your business's tax rate. Tax is added on top of the price; it's never counted as profit.
Read the result
- Sell it for — the price before tax, and underneath, what the customer pays with tax.
- Profit per unit, Tax, Margin and Markup — always showing both, so you can see one in terms of the other.
- Price to a round number — suggests tidy prices such as 350 or 400 instead of 333.33. Pick one and the profit adjusts to match.
Compare with today's price
If you started from a product, a card shows what its current price earns at the cost you entered: profit per unit, margin and markup. If you're currently selling below cost, it tells you how much you lose on each one sold.
The calculator only works out the number. To change what you charge, edit the product in Stock → Products.
Good to know
- A margin of 100% or more is impossible — the price would have to be infinite. Use markup for very large mark-ups.
- Switching between margin, markup and fixed amount keeps the same price and restates the profit in the new terms.
- Products with no cost price make stock value and profit reports treat them as free. Add the real cost on the product.