Pricing
Profit Margin Calculator
Get profit margin and markup from a cost and price, or set a target margin or markup to find the selling price. Works for any product — everything runs in your browser.
Switch between solving from a price, a target margin, or a target markup. Every calculation runs in your browser — no account, nothing sent to a server.
Profit margin
60%
At $100.00 on $40.00 cost, profit is $60.00 per unit — a 60% margin (150% markup).
Summary
- Selling price
- $100.00
- Cost
- $40.00
- Profit per unit
- $60.00
- Profit margin
- 60%
- Markup
- 150%
- Total revenue
- $100.00
- Total profit
- $60.00
How is this calculated?
Profit = Selling price − Cost
Profit margin = Profit ÷ Selling price × 100
Markup = Profit ÷ Cost × 100
Price from margin = Cost ÷ (1 − margin ÷ 100)
Price from markup = Cost × (1 + markup ÷ 100)
Margin vs. markup
Margin and markup both measure profit but against different bases. Margin is a share of the selling price; markup is a share of the cost. Mixing them up leads to underpricing, so it helps to be clear which one you are targeting.
Working from a target
If you know the margin or markup you need, this calculator solves for the selling price. That is useful when a required profit share is fixed and you need to set the price to hit it.
Why margin never reaches 100%
Because margin is measured against the price, covering a positive cost always leaves margin below 100%. If you ask for a 100% or higher margin, there is no finite price, so the result shows a dash.
Beyond gross margin
This tool covers the cost-to-price relationship. To include marketplace fees, shipping, and advertising in the picture, use the ecommerce profit calculator.
Frequently asked questions
What is a profit margin calculator?
It works out your profit margin and markup from a cost and a selling price, or the other way round: give it a cost and a target margin or markup and it finds the price you should charge.
What is the difference between margin and markup?
Both describe profit, but against different bases. Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. The same profit gives a smaller margin number than markup number, which is why the two are easy to confuse.
How do I calculate profit margin?
Subtract cost from selling price to get profit, then divide profit by the selling price and multiply by 100. For example, a $40 cost sold for $100 gives $60 profit and a 60% margin.
How do I calculate markup?
Divide the profit by the cost and multiply by 100. Using the same figures, $60 profit on a $40 cost is a 150% markup — the same sale, a different percentage base.
How do I find the selling price for a target margin?
Divide the cost by (1 − margin ÷ 100). For a 40% target margin on a $60 cost, that is 60 ÷ 0.6 = $100. Switch this calculator to “From margin” to do it automatically.
Can a profit margin be more than 100%?
No. Because margin is measured against the selling price, it approaches but never reaches 100% for a positive cost. Markup, measured against cost, can exceed 100%.
Should I price on margin or markup?
Use whichever your business tracks, but be consistent. Setting prices from a markup on cost is common in retail; targeting a margin is common when you have a required profit share of revenue. This tool supports both.
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