Profit Margin Calculator
Margin, markup & selling price
About the Profit Margin Calculator
Margin and markup are easy to confuse, and mixing them up can cost a business money. Enter your cost and selling price to see the profit, the margin (profit as a share of the price) and the markup (profit as a share of the cost), or enter a target margin to get the right selling price.
- Choose whether you know the selling price or a target margin.
- Enter the cost of the product or service.
- Enter the selling price or the margin you want.
- Read the profit, margin and markup.
Frequently asked
What is the difference between margin and markup?
Margin = profit ÷ selling price. Markup = profit ÷ cost. An item that costs 60 and sells for 100 has a 40% margin but a 66.7% markup.
How do I calculate the selling price from a margin?
Selling price = cost ÷ (1 − margin). For a 40% margin on a cost of 60, the price is 60 ÷ 0.6 = 100.
What is a good profit margin?
It depends on the industry. Retail and grocery margins are often low, while software and services can be much higher. Compare with businesses like yours.
Is what I type sent to a server?
No. The tool runs entirely in your browser and there's no server behind it, so what you type never leaves your device and nothing is stored. You can check: it keeps working if you go offline after the page has loaded.
More from the Money drawer
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