Profit Margin Calculator

Margin and markup measure the same profit against different bases. Margin is profit divided by the selling price, so it tells you what share of each sale you keep. Markup is profit divided by the cost, so it tells you how far above cost you priced the item. A 50% markup on a $40 cost gives a $60 price and a 33% margin, not a 50% margin.

Subtract the cost from the selling price to get the gross profit, then divide that profit by the selling price and multiply by 100. For a $40 cost and a $100 price, the profit is $60 and the margin is $60 / $100 = 60%.

Divide the cost by one minus your target margin (as a decimal). To earn a 50% margin on a $40 cost, divide $40 by (1 - 0.50), which is $80. A target of 100% or more is impossible, because no finite price can leave 100% of itself as profit over a positive cost.

No. It works out gross profit from the unit cost and selling price you enter, before tax, shipping, fees, or overhead. The results are estimates to guide pricing, not professional accounting or tax advice. Everything is calculated in your browser and nothing you type is sent anywhere.