Profit Margin Calculator
Enter what an item costs you and what you sell it for.
For information only. Results are calculated from the numbers you enter and are not professional, financial or medical advice. Check anything important with a qualified adviser.
How it works
- Enter what the product or service costs you.
- Enter the price you sell it for.
- See the gross profit, profit margin and markup.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. Selling for 100 something that costs 60 is a 40% margin but a 66.67% markup.
What is the profit margin formula?
Margin = (price − cost) ÷ price × 100. An item that costs 60 and sells for 100 has a margin of 40 ÷ 100 × 100 = 40%.
How do I price for a target margin?
Price = cost ÷ (1 − target margin). To get a 40% margin on a cost of 60, charge 60 ÷ 0.6 = 100.
Is this gross or net margin?
Gross margin — it only considers the direct cost you enter. Net margin also subtracts overheads like rent, salaries and tax.
Price with confidence
Knowing your margin tells you how much of each sale you keep. It's essential for pricing products, negotiating discounts and understanding which items actually make money.
Margin and markup aren't the same
Retailers often talk about markup, accountants about margin. A 50% markup is only a 33.3% margin. Mixing them up is a common pricing mistake — the calculator shows both.