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Profit Margin Calculator

Work out your profit, gross margin and markup from cost and selling price, or find the price you need to charge to reach a target margin.

Margin from cost and revenue

Profit–
Profit margin–
Markup–

Selling price for a target margin

Selling price needed–
Profit–
Markup–

Results are calculated in your browser from the numbers you enter. Nothing is uploaded or stored.

How to use the Profit Margin Calculator

  1. For margin: enter your cost and your revenue or selling price.
  2. For pricing: enter your cost and the margin you want to earn.
  3. Read profit, margin, markup and the price needed.

Margin and markup formulas

Worked example

A product costing 60 and selling for 100 earns 40 of profit. The margin is 40 ÷ 100 = 40%, while the markup is 40 ÷ 60 = 66.67%. To earn a 30% margin on a cost of 70, the price must be 70 ÷ 0.70 = 100.

Margin is not markup

Margin is a share of the selling price; markup is a share of the cost. A 50% markup gives only a 33.3% margin. Mixing them up is a common reason prices end up too low, so check which one your supplier, shop platform or accountant means.

What the figures include

This is gross profit based only on the cost you enter. Add shipping, fees, advertising, wages and tax to your cost if you want a true net figure.

Frequently asked questions

What is the difference between margin and markup?

Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. For the same sale, markup is always the larger number.

How do I calculate profit margin?

Subtract cost from revenue to get profit, divide by revenue and multiply by 100.

How do I price a product for a 40% margin?

Divide the cost by 0.60. A product costing 30 would need a selling price of 50.

Why does the calculator show a dash?

Margin needs a revenue above zero and a target margin below 100%. Markup needs a cost above zero.

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Last updated: November 6, 2026