Profit Margin Calculator
Find your profit and margin from cost and price — or the price needed to hit a target margin.
Runs in your browser — nothing is uploadedEnter values
Calculate
Result
- Gross profit
- $40.00
- Markup
- 66.67%
How it's calculated
Margin = (Price − Cost) ÷ Price × 100
= ($100.00 − $60.00) ÷ $100.00 × 100 = 40%
About Profit Margin Calculator
Profit margin shows what share of the selling price is profit. It is one of the most important numbers for pricing products, judging which items are worth selling and checking that a business covers its costs.
Enter the cost and selling price to see the profit, margin and markup together — or enter the margin you want and get the price you need to charge.
When to use it
- Pricing products for an online store or retail shop.
- Checking profitability of services and quotes.
- Comparing margins across products or suppliers.
- Setting prices to hit a target margin.
Tips for better results
- Include all direct costs — shipping, packaging and payment fees — in your cost.
- A 50% markup is only a 33% margin; do not confuse the two when pricing.
- Check margins after discounts, since discounts reduce margin faster than expected.
How to use the Profit Margin Calculator
- Enter your cost.
- Enter the selling price, or the margin you want.
- See profit, margin and markup.
Frequently asked questions
Margin vs markup — what is the difference?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. A 50% markup equals a 33.3% margin.
Why can't margin be 100%?
A 100% margin would mean the cost is zero. Any real cost keeps the margin below 100%.
What is a good profit margin?
It depends on the industry. Grocery and fuel retailers may operate on low single-digit margins, while software and services can exceed 50%. Compare with businesses similar to yours.
What is the difference between gross and net margin?
Gross margin uses only the direct cost of the product. Net margin also subtracts overheads such as rent, salaries, marketing and taxes. This calculator works out gross margin from the cost you enter.