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
- 1Enter the cost and the selling price.
- 2Read the profit, margin and markup.
- 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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