Margin calculator

Calculating your margin will help you find the right selling price for your product so you can optimize your profits. To use this calculator, simply enter the gross cost for your item and then how much money you’d like to make on each sale.

Unfortunately, this tool is not available in your region

Our Margin calculator is currently available for US residents only

Calculate payroll for your hourly employees with Wave.

What is margin?

Generally speaking, your profit margin is what your company uses to determine what percentage of sales has turned into profits. It’s also considered your bottom line after all other expenses have been taken into account. Generally speaking, you'll want to increase your gross profit margins, which can be accomplished by either increasing profits or decreasing costs.

Helpful tips

Your profit margin offers critical insight into the health of your business, such as whether you’re making money or you’ve priced your product appropriately. Here are some helpful tips:

  • Profit margins generally differ from industry to industry. Look at how your profit margin compares with other businesses in your sector as a benchmark.
  • While a healthy margin is important, it’s only one measurement of your financial health and shouldn’t come at the cost of other factors, such as satisfied customers, happy employees, steady growth and good debt ratios.
  • Getting paid on time is key to increasing your profits. Check out how Wave offers better payment solutions to help you manage your cash flow and improve your bottom line.
  • Did you know that you can run cash flow and P&L reports by using Wave's free accounting software?
  • Check out our other accounting tools that can help you calculate cash flow, budget, burn rate, and more!

Frequently Asked Questions

Is your software actually free?

Yes! Our invoicing, accounting, and US-only banking software is 100% free—no trials, subscriptions, or hidden fees.

What’s the catch—how does Wave make money?

Wave makes money through our optional, paid money management products. Depending on your business needs, you can choose to pay for online payment processing, payroll, and 1:1 advisors. This allows our core software—invoicing, accounting, and business banking (currently only available to sole proprietors in the US)—to always be free.

Do I need to enter my credit card details to sign up?

Put your wallet away. You won’t need to enter a credit card unless you want to use our payroll service. Just create your account and get started for free.

Do I need to install any software?

Wave is 100% web-based, so you just need an Internet connection and browser. You can, however, download and install our mobile invoicing app for iOS and Android.

Is my data secure?

Completely. Our servers are protected physically and electronically. Any connection between you and Wave is protected by 256-bit SSL encryption. Wave is a PCI-DSS Level 1 Service Provider.

Do you provide customer support?

We provide different levels of support for customers who use different parts of Wave. Full details on how Wave support works are available here.

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