Tools · Business Tools
Profit Margin Calculator
Calculate profit, margin, markup, and selling price for products or services. No currency conversion is applied.
Profit from cost and selling price
Selling price from desired margin
Selling price from markup
Margin measures profit as a percentage of selling price, while markup measures profit as a percentage of cost. Figures stay in this session and are not stored.
What is a profit margin calculator?
It turns cost and selling price into profit, then shows that profit as a share of the selling price (margin) or of cost (markup). You can also work backwards from a target margin or markup to a selling price.
How to use it
- Choose a currency symbol for display only.
- Enter cost and selling price, or a target margin or markup.
- Read profit, margin, markup, and the implied selling price.
Why use it?
Online sellers, shops, small businesses, freelancers, and service businesses can check that a price covers cost and leaves the intended share of profit.
FAQ
What is the difference between margin and markup?
Margin is profit divided by selling price. Markup is profit divided by cost. A 50% markup on 100 is a selling price of 150, which is a 33.33% margin.
Why is a 100% margin not allowed?
A 100% margin would mean all of the selling price is profit, which would require a cost of zero in that formula and divides by zero.
Read the original guide: Price the work so the margin is not a surprise.