Profit Margin Calculator
Calculate profit, profit margin, markup, and selling price from cost and revenue.
Results
Profit
$0.00
Profit
$0.00
Profit margin
0.00%
Markup
0.00%
Selling price
$0.00
Total cost
$0.00
Target margin scenarios
| Target margin | Selling price | Profit | Markup |
|---|---|---|---|
| 20% | - | - | - |
| 30% | - | - | - |
| 40% | - | - | - |
| 50% | - | - | - |
Profit margin formula
Profit margin shows how much of your selling price remains as profit after costs.
Profit = Selling price - Total cost
Profit margin = Profit ÷ Selling price × 100
Markup = Profit ÷ Total cost × 100
If a product costs $70 and sells for $100, the profit is $30. The profit margin is 30.00%, while the markup is 42.86%.
Profit margin vs markup
Profit margin and markup are often confused, but they are not the same.
- Profit margin compares profit to selling price.
- Markup compares profit to cost.
| Metric | Formula | Example with $70 cost and $100 selling price |
|---|---|---|
| Profit margin | Profit ÷ Selling price × 100 | $30 / $100 = 30.00% |
| Markup | Profit ÷ Cost × 100 | $30 / $70 = 42.86% |
A 30% markup does not mean a 30% profit margin. This is one of the most common pricing mistakes.
What is profit margin?
Profit margin is the percentage of revenue that remains as profit after costs are subtracted. Businesses use profit margin to understand pricing, profitability and whether a product or service leaves enough room to cover other expenses.
This calculator focuses on gross profit margin per unit. It does not include monthly overhead, salaries, advertising spend, taxes or other business-wide expenses unless you include them as extra cost per unit.
Frequently asked questions
How do you calculate profit margin?
Subtract total cost from selling price to get profit. Then divide profit by selling price and multiply by 100.
What is the difference between margin and markup?
Margin compares profit to selling price. Markup compares profit to cost. For example, if cost is $70 and selling price is $100, the margin is 30.00% and the markup is 42.86%.
How do I calculate selling price from a target margin?
Divide total cost by 1 minus the target margin. For example, with a $70 cost and a 30% target margin, the required selling price is $100.
Should I include shipping and payment fees in cost?
Yes, if those costs apply to each sale. Use the extra cost per unit field for shipping, packaging, payment fees or other per-order costs.
Is this a net profit margin calculator?
No. This calculator is mainly for gross profit margin per product or service. Net profit margin usually includes all business expenses, taxes, salaries and overhead.