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Example and reference only. This calculator produces illustrative estimates to help you plan. Figures are not exact, do not account for your full circumstances, and must not be used to file, remit, or make financial commitments. Confirm every amount with the CRA, Revenu Québec, or your accountant before acting on it. Nothing here is tax, accounting, or financial advice.

Pricing

Pricing, Break-Even and Margin Calculator

Find the sales you need to cover your fixed costs, see the difference between markup and margin, and work out how much to raise prices when fuel, materials or wages go up.

Prices exclude GST/HST. Variable costs are the costs that rise with each sale: materials, fuel, merchant fees, commissions, direct labour.

Break-even point 277 units $33,231 in monthly sales. You are 124 units above it.
This month
Contribution per unit $65.00
Gross margin 54.2%
Markup on cost 118.2%
Monthly sales $48,000
Monthly fixed costs $18,000
Monthly profit $8,000
If your costs rise
New variable cost per unit (+8.0%) $59.40
Price to keep the same dollars per unit $124.40
Price to keep the same 54.2% margin $129.60
Or units needed at today’s price to keep profit 430

Reading the numbers

  • →Margin and markup are not the same: a 50% markup is only a 33% margin. Quote and compare using margin.
  • →Holding the same percentage margin needs a bigger price rise than holding the same dollars — but it protects you if costs keep climbing.
  • →Most customers notice one clear increase less than several small ones. Explain the cost driver (fuel, materials, tariffs) when you raise prices.
  • →Run break-even on your slowest month. If that month is below break-even, plan cash for it with the cash-flow forecaster.
Pricing, Break-Even and Margin Calculator | CanadianSME