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About the profit margin calculator
Every seller asks two questions: How much do I make on each sale? and What price should I ask? This calculator answers both.
It has three modes:
- I know the price — type the cost and the selling price, get the margin and the markup
- I want a margin — type the cost and the margin you want, get the selling price
- I want a markup — type the cost and the markup you want, get the selling price
You always see the profit per unit, the profit margin, the markup and the selling price. Add the number of units under More options to see the total profit and the revenue. A table shows how markup and margin match on your cost.
Features
- Three modes — I know the price, I want a margin or I want a markup
- Margin and markup together — see both, plus the profit per unit and the selling price
- Total profit — under More options, add the Units sold to see the total profit and the revenue
- Loss warning — the tool tells you when the price is below the cost
- Markup to margin table — 10 markups, from 10% to 200%, with the margin and the selling price on your cost
- 47 currencies — pick your Currency; the choice is remembered and used by the other money tools too
- Copy the result — copy all the numbers, with a link to this page, in one click
- Private and saved — it all works in your browser, nothing is uploaded, and your numbers stay on this device for next time
How to use it
- Choose a mode: I know the price, I want a margin or I want a markup
- Type the Cost of one unit (what you pay to buy or make it)
- Type the Selling price, the Margin or the Markup, as the mode asks
- Open More options and type Units sold (optional) to see the total profit
- Read the table under the result to compare markups and margins
Margin and markup are not the same
Both start from the same profit (price − cost), but they divide by different numbers:
- Margin = profit ÷ selling price
- Markup = profit ÷ cost
When you open the page, the tool shows a cost of 40 and a price of 60:
- Profit per unit: 60 − 40 = 20
- Margin: 20 ÷ 60 = 33.33%
- Markup: 20 ÷ 40 = 50%
So a 50% markup is only a 33% margin. Mixing them up is a common pricing mistake.
Markup to margin table
For a cost of 40 (this is the same table the tool shows):
| Markup | Margin | Selling price |
|---|---|---|
| 10% | 9.1% | 44.00 |
| 20% | 16.7% | 48.00 |
| 25% | 20.0% | 50.00 |
| 30% | 23.1% | 52.00 |
| 40% | 28.6% | 56.00 |
| 50% | 33.3% | 60.00 |
| 75% | 42.9% | 70.00 |
| 100% | 50.0% | 80.00 |
| 150% | 60.0% | 100.00 |
| 200% | 66.7% | 120.00 |
How to price for a margin
To get a margin, divide the cost by 1 − margin. Do not just add the margin to the cost.
- Cost 40, margin 35%: 40 ÷ 0.65 = 61.54. Profit 21.54, markup 53.85%
- Cost 40, margin 50%: 40 ÷ 0.50 = 80.00. Markup 100%
| Margin you want | Markup you need | Price on a cost of 40 |
|---|---|---|
| 10% | 11.1% | 44.44 |
| 20% | 25.0% | 50.00 |
| 25% | 33.3% | 53.33 |
| 30% | 42.9% | 57.14 |
| 40% | 66.7% | 66.67 |
| 50% | 100.0% | 80.00 |
| 60% | 150.0% | 100.00 |
A margin must be under 100%. A markup can be any size.
Frequently asked questions
How do I calculate profit margin?
Take the selling price minus the cost, then divide by the selling price and multiply by 100. Price 60, cost 40: (60 − 40) ÷ 60 × 100 = 33.33%.
What is the difference between margin and markup?
Margin compares the profit to the selling price. Markup compares the profit to the cost. The same sale always has a higher markup than margin.
What selling price gives a 30% margin?
Divide the cost by 0.70. For a cost of 40, the price is 57.14.
What is a good profit margin?
It depends a lot on the type of business. Shops that sell many cheap items often have small margins. Services and software often have big ones. Compare with others in your own field.
Does the cost include shipping and fees?
It should, if you want the real profit. Put everything you pay for one unit in Cost: the product, packing, shipping and sales fees.
Is this financial advice?
No. It is a planning tool. It shows the math for the numbers you type.
Good to know
- This is the gross margin on one unit — rent and other fixed costs are not in it
- Works with any currency — choose it at the top
- Your numbers are saved only in this browser, and nothing is sent anywhere
Related tools
- Break-Even Calculator — how many units cover your fixed costs
- Discount Calculator — what a sale does to the price
- VAT Calculator — add or remove VAT
- Unit Price Calculator — compare prices per unit
- Percentage Calculator — any percent question
