Free profit margin calculator

Work out margin, markup & profit

Enter your cost and price to see profit, margin, and markup at a glance — or set a target margin and find the price you need to charge. Everything updates as you type.

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Margin & markup
Price from a target margin
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Profit margin calculator

Calculate your margin

Everything updates as you type. Nothing is uploaded — the maths runs entirely on your device.

$
$
Sale price Per unit $0.00
Cost Per unit $0.00
Revenue Price × quantity $0.00
Profit margin 0%
Profit per unit
$0.00
Markup
0%
Cost $0.00 Profit $0.00

What is profit margin?

Profit margin is your profit expressed as a percentage of the selling price. If something costs you $40 and you sell it for $100, your profit is $60 and your margin is 60% — because $60 is 60% of the $100 price. It tells you how much of every dollar of revenue you actually keep.

Markup describes the same profit from the other side: as a percentage of the cost. That same $60 profit on a $40 cost is a 150% markup. Pricing from markup is common, but margin is what shows up on your invoices and accounts — so it pays to know both.

The maths

Margin, markup & profit

Profit margin

Profit as a share of the price you sell at:

Margin % = (Price − Cost) ÷ Price × 100

Markup

Profit as a share of what it cost you:

Markup % = (Price − Cost) ÷ Cost × 100

Price for a target margin

Work backwards from the margin you want:

Price = Cost ÷ (1 − margin)

Reference

Margin to markup, at a glance

The same profit looks like a smaller margin but a bigger markup. Here's how common targets line up.

Profit margin Equivalent markup On a $40 cost, sell at
10% 11.1% $44.44
20% 25% $50.00
25% 33.3% $53.33
33.3% 50% $60.00
40% 66.7% $66.67
50% 100% $80.00
60% 150% $100.00

Margin can approach but never reach 100% — markup has no ceiling.

How to use it

Three steps to your numbers

1

Pick a direction

Use Margin from price when you know what you charge, or Price from margin to hit a target margin.

2

Enter your figures

Type the cost and either the price or your target margin, then set a quantity to see totals.

3

Read & copy

See profit, margin, and markup with a cost-vs-profit split, then copy the summary into a quote or invoice.

FAQ

Profit margin questions

Subtract the cost from the selling price to get the profit, then divide the profit by the selling price and multiply by 100. A $40 cost sold for $100 gives $60 profit, and 60 ÷ 100 = a 60% margin.
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. The same $60 profit on a $40 cost is a 60% margin but a 150% markup, because the bases differ.
Divide the cost by 1 minus the target margin as a decimal. For a 60% margin on a $40 cost, the price is 40 ÷ (1 − 0.60) = $100. Switch to Price from margin mode and the calculator does it for you.
No. Because margin is measured against the selling price, it can approach but never reach 100% unless the cost is zero. Markup, measured against cost, has no upper limit.
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