ThinkVault ToolsMargin, Markup & Break-Even

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Margin, Markup & Break-Even

Fixed prices and costs; margin and markup use different denominators.

Results

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Gross profit per unit

$40.00
Gross margin %40%
Markup %66.67%
Break-even units250

Gross profit per unit

$40.00

Method and common questions

Tax, lending, holiday and protection rules vary by place and date. Check current local rules and provider terms. Results are estimates.

Purpose and inputs

Separate gross margin from markup and find the volume needed to cover overhead.

Method and assumptions

Unit profit=price−cost; margin=profit/price, markup=profit/cost. Break-even units=ceil(fixed overhead/unit profit) for positive unit profit. Zero price or cost makes the corresponding ratio undefined. Prices and unit costs are fixed and all units are assumed sold.

Method

Unit profit=price−cost; margin=profit/price, markup=profit/cost. Break-even units=ceil(fixed overhead/unit profit) for positive unit profit. Zero price or cost makes the corresponding ratio undefined. Prices and unit costs are fixed and all units are assumed sold.

FAQ

What are the limitations?
Fixed prices and costs; margin and markup use different denominators.
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