Profit Margin Calculator

Calculate gross profit, margin and markup from cost and price, or find the selling price that achieves a target margin or markup. Free, instant, no sign-up.

Results

Selling price
100.00
Gross profit
40.00
Gross margin
40%
Markup
66.67%
Assumptions & method
  • Margin = profit ÷ price. Markup = profit ÷ cost. A 50% markup equals a 33.33% margin.

What is Profit Margin Calculator?

Calculates gross profit, margin (profit as a share of the selling price) and markup (profit as a share of the cost). It can also work backwards to the selling price needed for a target margin or markup.

How to use Profit Margin Calculator

  1. Choose what to Calculate: margin from cost and price, price from a target margin, or price from a target markup.
  2. Enter the Cost and the selling price, target margin or target markup.
  3. Read the price, profit, margin and markup.

Example

Input
Cost 60, price 100
Output
Gross profit 40.00; margin 40%; markup 66.67%

When to use Profit Margin Calculator

Use it when pricing products or reading financial statements. Margin and markup are often confused – a 50% markup is only a 33.33% margin – so state which one you mean when quoting prices.

How Profit Margin Calculator works

Profit = price − cost. Margin = profit ÷ price × 100. Markup = profit ÷ cost × 100. Price from a target margin = cost ÷ (1 − margin); price from a target markup = cost × (1 + markup). A margin of 100% or more is impossible, so the margin input is limited to below 100%.

Common Use Cases

  • Pricing a product for a 40% margin
  • Converting a supplier's markup to margin
  • Checking the profitability of a sale
  • Training staff on margin vs markup

FAQs

What is the difference between margin and markup?

Margin divides profit by the selling price; markup divides it by the cost. The same sale has a lower margin than markup.

Is this gross or net margin?

Gross margin: only the cost you enter is subtracted. For net margin include all costs in the cost field.

Why can the margin never reach 100%?

That would require a cost of zero; as the margin approaches 100% the required price grows without limit.

Good next steps

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