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Profit Margin Calculator

Calculate gross profit margin and markup from cost and price, or find the selling price for a target margin.

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About the Profit Margin Calculator

Margin and markup are often confused, which leads to under-pricing. Margin is profit as a share of the selling price; markup is profit as a share of cost. Enter your cost and price to see both, or enter a target margin to get the price you need to charge.

How to use it

  1. Choose what to calculate.
  2. Enter cost and selling price, or cost and target margin.
  3. Read margin, markup and profit.

Good to know

  • This is gross margin: it excludes overheads such as rent, salaries and marketing.

Frequently asked questions

Is a 50% markup a 50% margin?

No. A 50% markup equals a 33.3% margin; a 50% margin requires a 100% markup.

How do I price for a 40% margin?

Price = cost ÷ (1 − 0.40). A $60 cost becomes $100.

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