ApparelOps

Free tools / Margin and break-even calculator

Retail margin and break-even calculator

Check whether a selling price leaves enough after your costs and fees, and how many units you must sell to recover your fixed launch costs. Markup and margin are shown separately because they are not the same number.

Formulas

Gross margin = (price − unit cost) ÷ price

Markup = (price − unit cost) ÷ unit cost

Contribution per unit = price − unit cost − (price × fee %) − other per-unit costs

Break-even units = ceil(fixed launch costs ÷ contribution per unit)

Break-even needs a contribution above zero; if there is none, the tool says so instead of showing a number. Revenue is never called profit. Assumptions and limits.

Per unit
Text only, for example USD. Nothing is converted.
Everything it costs to make or buy one unit. The unit-cost estimator can work this out.
What the customer pays for one unit, before any tax you collect for the government.
Payment or marketplace fee as a percent of the price. Blank counts as 0%.
For example shipping materials or returns allowance. Blank counts as 0.
One-off
Samples, photography, set-up and similar, in total. Needed for break-even.

Result

Enter a unit cost and a selling price to see a result.

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