About the Profit Margin Calculator
Work out profit, gross margin and markup from a cost and selling price, or find the price you need to charge to hit a target margin or markup.
Key features
- Profit, margin and markup from cost and selling price
- Find the selling price for a target margin
- Find the selling price for a target markup
- Clear margin vs markup comparison
- Multiple currencies
- Results update as you type
Price products with confidence
Getting pricing right is essential for any business. Enter your cost and selling price to see profit, margin and markup, or start from a target margin to find the price you should charge.
Formulas
| Metric | Formula |
|---|---|
| Profit | price − cost |
| Margin | profit ÷ price × 100 |
| Markup | profit ÷ cost × 100 |
| Price from margin | cost ÷ (1 − margin) |
| Price from markup | cost × (1 + markup) |
Margin vs markup table
| Markup | Margin |
|---|---|
| 25% | 20% |
| 50% | 33.3% |
| 100% | 50% |
| 150% | 60% |
| 200% | 66.7% |
Margin can never reach 100%, but markup can be any size.
Example
A product costs 45 to make and ship.
- Sell at 75: profit 30, margin 40%, markup 66.7%.
- Target 50% margin: price = 45 ÷ 0.5 = 90.
- Target 50% markup: price = 45 × 1.5 = 67.50 (margin 33.3%).
Related calculators
Add tax to your price with the Sales Tax Calculator, or calculate customer discounts with the Discount Calculator.
How to use the Profit Margin Calculator
- Enter your numbers in the fields above. Units and options can be changed at any time.
- The result updates instantly as you type; there's no calculate button to press.
- Check the breakdown under the main result for the details behind the number.
- Adjust the inputs to compare scenarios, for example a different rate or term.