Profit Margin Calculator
Know exactly how much you earn on each sale. Enter cost and price to get margin and markup, or enter a target margin to get the selling price you need.
Runs in your browser
How to use
- Choose whether you know the price or a target margin.
- Enter the cost (and price or margin).
- Read the margin, markup and profit.
How it works
Gross margin = (price − cost) ÷ price × 100. Markup = (price − cost) ÷ cost × 100. Margin is a share of the selling price; markup is a share of the cost, so markup is always higher than margin for the same product.
To reach a target margin, price = cost ÷ (1 − margin ÷ 100). A 35% margin on a cost of 40 needs a price of 61.54.
Examples
- Retail product
- Cost 40, price 65 → margin 38.46%, markup 62.5%.
- Target margin
- Cost 40, margin 35% → price 61.54.
Common uses
- Pricing products
- Checking profitability
- Preparing quotes
Privacy & security
This tool runs entirely in your browser. Your files and text are never uploaded to our servers — processing happens on your device and results are created locally. How each tool handles files
Frequently asked questions
Why is margin always lower than markup?
Both use the same profit, but margin divides by the (larger) price and markup by the (smaller) cost.
Can the margin be 100%?
Only if the cost is zero. A 100% markup equals a 50% margin.
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