Practical guides
Worked examples to help you use the calculators correctly.
Profit margin vs markup: why 25% gives two different prices
Margin measures profit as a share of the selling price. Markup measures profit as a share of cost. They answer different questions, so entering the same percentage does not give the same selling price.
Practical guideHow to price a product without overlooking small costs
The purchase or ingredient cost is only the starting point. A bag, label, container, payment charge or transport allocation can change the profit on a low-priced item. Write down the costs incurred for every sale before deciding on a price.
Practical guideHow to compare pack prices using the same unit
A smaller pack can have a lower checkout price and a higher cost per kilogram. Unit price lets you compare quantities fairly. It does not decide quality, convenience or whether you can use the whole pack.
Practical guideDaily profit, break-even sales and your income target
Revenue is selling price multiplied by items sold. To estimate profit, subtract the variable cost of those items and the fixed expenses for the day. Cash in your wallet can differ from profit when customers pay later, you buy stock for future days or you repay borrowing.