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Profit Margin Calculator

For shop owners, resellers and freelancers: find your profit, margin and markup from cost and price, or work out what to charge to hit a target margin.

Free · No sign-up · Files stay on your device

How to use Profit Margin Calculator

  1. 1Enter the cost and the selling price.
  2. 2Read the profit, margin and markup.
  3. 3Or switch to "Find price" and enter a target margin or markup.

Features

  • Profit, margin and markup
  • Selling price from target margin
  • Selling price from target markup
  • Handles losses
  • Formulas shown

Margin vs markup

Margin is profit as a percentage of the selling price: (price − cost) ÷ price. Markup is profit as a percentage of the cost: (price − cost) ÷ cost. Buying at 80 and selling at 100 is a 20% margin but a 25% markup. Mixing them up is a common pricing mistake.

Frequently asked questions

What is a good profit margin?

It depends on the industry: groceries often run at 2–5%, retail at 20–50%, and software or services can be higher.

How do I price for a 30% margin?

Divide the cost by 0.70. A cost of 70 needs a price of 100.

Can margin be over 100%?

No, margin is always below 100%. Markup can be any size.

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