Pricing & Margins
Guides to setting prices and working out margins: profit margin, markup and the selling price.
What is profit margin and how is it calculated?
What profit margin is, how it differs from markup and how to set a selling price from the margin you want. With formulas and a worked example.
4 min readWhat is the break-even point and how is it calculated?
What the break-even point is, how to calculate it with the contribution margin and how many sales you need to stop losing money. With a worked example.
6 min readMargin vs markup: what is the difference?
Margin and markup measure the same profit on different bases. Learn to convert one to the other: a 40% margin is a 66.67% markup. With formulas and an example.
3 min read
The content is educational and does not constitute financial advice.