Profit Margin Calculator
Enter cost and selling price to see your profit, profit margin (profit as a share of the price) and markup (profit as a share of cost) together. In pricing mode, enter a target percentage and get the required selling price — comparing how different the price is when the same percentage is applied as margin versus markup. Handy for quotes, e-commerce pricing and product profitability checks.
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Frequently asked questions
What is the difference between margin and markup?
Margin is profit divided by selling price; markup is profit divided by cost. An item costing 60 sold at 100 earns 40 profit: a 40% margin (40/100) but a 66.7% markup (40/60). Always clarify which one a price agreement refers to.
How do I find the price for a target margin?
Price = cost ÷ (1 − margin). For a 40% margin on a cost of 60, price = 60 ÷ 0.60 = 100. Using markup instead gives price = cost × (1 + markup) = 60 × 1.40 = 84 — that is exactly the difference between the two concepts.
Why can't margin be 100%?
A 100% margin would mean the product costs nothing, since margin is profit over selling price. Prices cannot be derived for margins of 100% or more — the formula divides by zero. Markup has no such limit (200% markup simply means the price is three times the cost).
Is this gross or net margin?
This tool computes gross margin: the difference between selling price and product cost. Net margin additionally subtracts operating expenses and taxes, and is always lower than gross margin.