Include all direct costs
For products, include shipping, packaging and payment fees. For services, include the time you actually spend.
Profit Margin Calculator
Enter what something costs you and what you sell it for to see your profit, margin and markup. Or set a target margin and get the price you need to charge.
- 100% free
- No sign-up
- Runs in your browser
Gross margin0
Profit0
Markup0
Selling price0
How to use
How to use the Profit Margin Calculator
- Choose a mode: find your margin, or find the price for a target margin.
- Enter your cost per unit or per job.
- Enter your selling price, or the margin you want to achieve.
- Read your profit, margin and markup straight away.
Private by design. Everything happens in your browser. Nothing you type or upload is sent to our servers, stored or shared.
About this tool
Margin vs markup: why the difference matters
Margin and markup describe the same profit from two angles. Margin is profit divided by the selling price. Markup is profit divided by the cost. A product that costs 60 and sells for 100 has a 40% margin but a 66.7% markup.
Mixing the two is one of the most common pricing mistakes. If you want a 40% margin and simply add 40% to your cost, you end up with only a 28.6% margin. To hit a target margin, divide your cost by one minus the margin: 60 ÷ 0.6 = 100.
Good to know
Pricing tips
Know your target margin
Decide the margin you need to cover overheads and profit, then price from it rather than from competitors alone.
Watch discounts closely
A 10% discount on a 30% margin product cuts your profit by a third. Check before you run a sale.
Review prices regularly
When costs rise, margins shrink quietly. Recheck your key products every few months.
FAQ
Profit Margin Calculator FAQs
What is a good profit margin?
It depends on the industry. Software and services often run high gross margins, while retail and food are much lower. Compare with businesses like yours.
How do I calculate profit margin?
Subtract cost from the selling price to get profit, then divide profit by the selling price and multiply by 100.
How do I convert markup to margin?
Margin equals markup divided by (1 + markup). A 50% markup equals a 33.3% margin.
Is this gross or net margin?
Gross margin, based on the direct cost of the item. Net margin also subtracts overheads such as rent and salaries.
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