Profit Margin & Markup Calculator
Enter cost and selling price to get profit, margin and markup instantly — or find the price that hits your target margin.
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Find the selling price for a target margin
Profit margin vs markup
Profit margin is profit divided by selling price: margin = (price − cost) / price. Markup is profit divided by cost: markup = (price − cost) / cost. They are different: a 25% margin is a 33.3% markup. Mixing them up is the most common pricing mistake.
| Profit margin | Equivalent markup |
|---|---|
| 10% | 11.1% |
| 15% | 17.6% |
| 20% | 25.0% |
| 25% | 33.3% |
| 30% | 42.9% |
| 40% | 66.7% |
| 50% | 100.0% |
| 60% | 150.0% |
Related: VAT calculator, discount calculator, percentage calculator.
How to use it
- Enter your cost and your selling price.
- Read profit, margin % and markup %.
- Enter a target margin to get the price you need to charge.
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Frequently asked questions
How do you calculate profit margin?
Subtract cost from selling price, then divide by selling price and multiply by 100. Example: cost 60, price 100 gives profit 40 and a 40% margin.
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. Cost 60 and price 100 is a 40% margin but a 66.7% markup.
How do I find the price for a target margin?
Divide your cost by (1 − target 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 are often low single digits to about 10% net, software and services can be far higher. Compare with your own sector.
Is gross margin the same as profit margin?
Gross margin only subtracts direct costs (cost of goods sold). Net profit margin also subtracts overheads, interest and taxes. This calculator uses whatever cost you enter.