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Profit Margin Calculator

Margin and markup are easy to mix up. Enter a cost and a selling price to see profit, margin and markup, or enter a cost and a target to find the price you need. Results are rounded to the cent and calculated in your browser.

Profit margin calculator

What do you want to find?

Fill in the fields above to see the result.

How to use it

  1. Choose what to find

    Pick margin from cost and price, price for a target margin, or price for a target markup.

  2. Enter the numbers

    Type the cost and the second value for the mode you chose. Choose a currency if you want the symbol shown.

  3. Read the result

    See profit, margin and markup together. Prices for a target are rounded up to the next cent so the target is met.

Example: cost 12, price 20

Profit is 20 − 12 = 8. Margin is 8 ÷ 20 = 40%. Markup is 8 ÷ 12 = 66.67%. To earn a 40% margin on a cost of 12 you charge 12 ÷ (1 − 0.40) = 20.00.

Margin versus markup

The same profit gives a different percentage depending on what you divide by.

Margin and markup for the same sale
MeasureFormulaCost 12, price 20
Profitprice − cost8.00
Marginprofit ÷ price40%
Markupprofit ÷ cost66.67%
Price for a margincost ÷ (1 − margin)20.00 for 40%
Price for a markupcost × (1 + markup)20.00 for 66.67%

Limits and limitations

  • This is gross margin on one item: it does not include fees, tax or overheads unless you include them in the cost. The seller fee calculators on this site include fees.
  • A margin of 100% or more cannot be a target, because costs would have to be 0.
  • Markup is not shown when the cost is 0, since it would divide by zero.
  • The result is an estimate for planning, not accounting, tax or legal advice. Sales tax, VAT, income tax, currency conversion and returns are not included unless you enter them as a cost.

Frequently asked questions

What is the difference between margin and markup?

Margin is profit as a share of the selling price. Markup is profit as a share of the cost. A 50% markup equals a 33.33% margin.

How do I calculate profit margin?

Subtract cost from price, divide by price, and multiply by 100. For a price of 20 and a cost of 12 that is 8 ÷ 20 = 40%.

What is a good profit margin?

It depends on the industry, volume and overheads. There is no single good number, so compare with your own costs and similar sellers.

Is my data uploaded?

No. Your numbers is worked out by JavaScript running in your browser and is not sent to a server. The page itself still loads from a web server like any website. This site can load advertising or analytics scripts, but only after you accept them in the cookie notice. They are separate from the tools, which never pass the files or text you work with to them.

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