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Profit margin calculator

Enter what an item costs you and what you sell it for to see your margin and markup. Or enter the margin you want and get the price to charge.

What do you want to work out?

What one unit costs you to make or buy

What the customer pays, before sales tax

Enter amounts in your own currency. Nothing you type leaves this page.

Profit margin

40.00%

Markup

66.67%

The formulas, with your numbers

Profit = price − cost = 100.00 − 60.00
40.00
Margin = profit ÷ price × 100
40.00%
Markup = profit ÷ cost × 100
66.67%

How to calculate profit margin

Subtract the cost from the selling price to get the profit, then divide the profit by the price and multiply by 100. An item that costs 60 and sells for 100 makes 40 profit, a 40% margin.

  • Profit = price − cost
  • Margin % = profit ÷ price × 100
  • Markup % = profit ÷ cost × 100
  • Price for a target margin = cost ÷ (1 − margin %)

Margin and markup are not the same

Margin is profit as a share of the price; markup is profit as a share of the cost. The same sale gives two different numbers: adding a 50% markup to a 10 item prices it at 15, which is a 33.33% margin. Pricing with a markup when you meant a margin leaves you with less profit than you planned.

What to count as cost

For the margin on one product, include everything it costs to get one unit to a customer: the product or materials, packaging, and any per-sale shipping, payment processing and marketplace fees you pay. Rent, software and other fixed costs come out of the profit that is left.

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