Profit Margin Calculator – Margin & Markup
Enter your cost and selling price to get the profit, profit margin, and markup percentage. Runs in your browser — no signup.
Enter cost and revenue to see margin and markup.
How it works
Margin vs markup — what's the difference?
Profit is revenue minus cost. Profit margin is profit as a percentage of revenue (profit ÷ revenue), while markup is profit as a percentage of cost (profit ÷ cost). Markup is always higher than margin for the same sale, which is why the two are easy to confuse when pricing.
How to use this calculator
Enter the cost to make or buy the item and the revenue you charge. The calculator returns the profit and both percentages. To hit a target margin, divide cost by (1 − margin); for example, a 40% margin on a $60 cost means a $100 price.
Frequently asked questions
›What is a good profit margin?
It varies by industry. Retail often runs 5–20%, software much higher. Compare against peers in your sector rather than a single rule.
›What's the difference between margin and markup?
Margin is profit ÷ revenue; markup is profit ÷ cost. A 50% markup equals a 33% margin.
›How do I reach a target margin?
Divide cost by (1 − target margin). A 40% margin on a $60 cost gives a $100 price.
›Is this gross or net margin?
It calculates gross margin from a single cost and price. Net margin also subtracts overhead, taxes, and other expenses.
›Can margin be negative?
Yes. If cost exceeds revenue, profit and margin are negative, meaning the sale loses money.
Related tools
Last updated: