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📊 Business Calculators

Profit margin, break-even point and ad ROI — the three numbers every business owner should know.

Why these three? Profit margin tells you if your pricing works. Break-even tells you how much you must sell to survive. Ad ROI tells you if your marketing actually makes money. Get these right and most business decisions get easy.

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How to Use the Business Calculators

Profit Margin: enter your selling price (revenue) and total cost. You get your gross margin % — profit as a share of price — and your markup % — profit as a share of cost. Remember: margin and markup are different numbers. A product bought for $60 and sold for $100 has a 40% margin but a 67% markup. Price on margin, not markup.

Break-Even: enter your fixed costs (rent, salaries — costs that don't change), your price per unit and your variable cost per unit (materials, packaging). The calculator shows how many units you must sell to cover everything, and the revenue that represents. Every unit after break-even is contribution toward profit.

Ad ROI: enter what you spent on ads and the revenue those ads produced. You get ROAS (revenue ÷ spend, e.g. 4.0x), ROI % ((revenue − spend) ÷ spend), and net profit. The honest rule: ROAS only tells half the story — subtract product and delivery costs too before calling a campaign profitable.

Run all three together once a month. If margin is thin, raise prices or cut costs before spending more on ads — advertising a losing product just loses money faster. Need help reading your numbers? Ask for a free consultation.

Frequently Asked Questions

What is a good profit margin for a small business?

It depends on the industry: retail often runs 5–15%, restaurants 10–20%, and services or digital products 30–60%+. A margin under 10% leaves little room for error; above 20% is healthy for most small businesses.

What is the difference between margin and markup?

Margin is profit as a percentage of the selling price: (price − cost) ÷ price. Markup is profit as a percentage of cost: (price − cost) ÷ cost. A 50% markup equals a 33% margin — mixing them up is a classic pricing mistake.

How do you calculate the break-even point?

Divide fixed costs by the contribution per unit (price minus variable cost). Example: $2,000 fixed costs ÷ ($50 price − $30 variable cost) = 100 units. Sell 100 units and every cost is covered; unit 101 is pure contribution.

What is a good ROAS for ads?

ROAS (return on ad spend) of 4:1 — $4 revenue per $1 spent — is a common healthy benchmark for e-commerce. But the real test is ROI after all costs: a 4x ROAS on thin margins can still lose money once product and shipping costs are included.