Margin and markup calculator
Compare cost and price or work backward from a target margin.
Library · Topic guide
Money and pricing
What does the business earn—and when is that money available?
Sales, profit and available cash answer different questions. This collection follows the money from a quoted price to the costs of delivery, the customer’s payment and the commitments still ahead.
How to approach this topic
Choose the starting point that matches the problem. If the bank balance is falling, trace timing and commitments. If the business is busy but leaves little behind, examine the price and included costs. One percentage will not explain both situations.
A suggested reading path
Build the picture, one question at a time
Read in order for an introduction, or start with the question you are facing. Some guides connect more than one business topic.
- Step 1
Separate profit from cash
Trace receipts and payments through the week instead of assuming recorded sales are available to spend.
- Step 2
Read margin and markup correctly
See why the denominator changes the percentage, and why the definition of cost matters.
- Step 3
Translate costs into a sales target
Connect the contribution from a sale to monthly commitments, then test the required volume against capacity.
- Step 4
Decide what can go to the owner
Compare household needs with upcoming business commitments while keeping payment method and affordability distinct.
An illustrative business situation
A profitable order that still needs funding
A small supplier accepts an order with a deposit, buys materials immediately and collects the balance after delivery. The order may leave money above its costs, yet the supplier still needs cash between purchasing and collection. Comparing margin and payment dates explains why a promising order can strain the bank account.
Put it to work
13-week cash workbook
Put receipts and payments on dates and find the weeks that need attention.
All money articles and resources
Explanation
How much can you pay yourself without leaving the business short?
Connect your household needs with the business’s upcoming commitments, and distinguish the amount you can fund from the correct way to pay it.
Explanation
How much do you need to sell to cover the cost of being open?
Turn prices and costs into a sales target, then check whether demand, working hours and cash can support it.
Explanation
A 30% markup is not a 30% margin
The same sale can produce two different percentages. Learn which amount each uses and why the costs you include matter just as much.
Explanation
The work is finished. Why are you still waiting to be paid?
Find out whether an invoice is missing information, waiting for approval or disputed, and what the delay means for your next payment commitments.
Explanation
The business is busy. Why is cash still tight?
Sales, profit, and available cash move at different times. Find the week when the business may need to act.
Current briefing
The Federal Reserve raised its rate. Your borrowing rate is a different number.
The federal funds target is now 3.75% to 4.00%. A business loan still depends on its own benchmark, margin, terms, and risk.
Current briefing
Consumer prices rose 0.4% in August. Your costs may have moved differently.
The national consumer index is context. Pricing decisions still require the business’s own invoices, usage, payroll, and margins.
Explanation
How much cash should a business keep available?
Use upcoming bills, expected customer payments and possible delays to work out how much cash the business needs to keep available.
Explanation
Will a price increase improve the business?
Compare what sales leave after direct costs at each price. Then calculate how many sales you could lose before the price increase leaves you worse off.
Working tool
13-week cash workbook
Enter dated receipts and required payments to find the lowest projected balance before it becomes an emergency.
Working tool
Price change calculator
Compare current and proposed contribution, the units needed to preserve the current result, and the effect of an expected volume change.