Business Calculators
5 free business tools
Margin and markup are different numbers, and confusing them loses money.
Small business maths has a handful of concepts that quietly determine whether a venture works: the margin on each sale, the volume needed to cover fixed costs, and the rate that makes self-employment sustainable once tax and unpaid time are accounted for.
Break-Even Calculator
Find the units and revenue needed to cover your fixed and variable costs.
Open calculatorROI Calculator
Calculate return on investment, net profit and annualized ROI.
Open calculatorProfit Margin Calculator
Calculate gross profit, profit margin and markup from cost and revenue.
Open calculatorMarkup Calculator
Set a selling price from cost and markup, and see the resulting margin.
Open calculatorFreelance Hourly Rate Calculator
Work out the hourly rate to charge to hit your income goal after expenses and tax.
Open calculator
Markup is not margin
Markup measures profit against cost; margin measures it against the selling price. A 50% markup produces a 33% margin, not 50%. Businesses that price using markup while budgeting on margin systematically overestimate their profitability, and the error grows with volume. Decide which one you are working in and stay in it.
A freelance rate is not a salary divided by hours
Converting a salary to an hourly rate by dividing by 2,080 ignores self-employment tax, the absence of employer benefits, unpaid administration and time between contracts. A realistic rate works backwards from target take-home, grosses up for tax and expenses, then divides by billable hours only — usually far fewer than the hours you work.
Frequently Asked Questions
What is the difference between margin and markup?+
Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. A 50% markup equals a 33% margin. Mixing them up is one of the most common pricing errors in small business.
How do I calculate my break-even point?+
Divide fixed costs by the contribution margin per unit — the selling price minus the variable cost. The result is how many units you must sell before fixed costs are covered and profit begins.
What should I charge as a freelancer?+
Start from the take-home you need, add self-employment tax and business expenses, then divide by realistically billable hours. Billable time is usually 50–70% of hours worked, which is why naive salary-to-hourly conversions come out far too low.