Profit Margin Calculator
This profit margin calculator turns your cost and revenue into instant margin, markup, and profit figures. Enter what a product costs and what you charge, and you immediately see how much you keep — ideal for business owners pricing products, freelancers setting rates, and e-commerce sellers checking profitability.
Beyond a single percentage, the tool covers gross, operating, and net margins, switches between margin and markup, and even works in reverse: enter a target margin and it tells you the selling price to charge.
Margin vs. Markup: What's the Difference?
One of the most common points of confusion in pricing is the difference between margin and markup — both describe the same profit, just from a different base.
- Profit margin is profit as a percentage of revenue (the selling price). Formula:
(Revenue − Cost) / Revenue × 100. - Markup is profit as a percentage of cost. Formula:
(Revenue − Cost) / Cost × 100.
Example: a product that costs $60 and sells for $100 has a 40% margin but a 66.7% markup — the same $40 of profit expressed two ways. The calculator always shows both, so you never have to convert by hand.
How to Use the Profit Margin Calculator
Pick a mode
Use Calculate Margin when you know cost and price and want the margin. Switch to Set Price when you know cost and a target percentage and want the selling price.
Enter your numbers
Type your Cost, then either the Revenue / Selling Price (Calculate mode) or a Desired Margin/Markup percentage (Set Price mode). Results update as you type.
Add expenses for deeper margins
Switch the margin type from Gross to Operating to include operating expenses (rent, utilities, salaries), or to Net to also subtract taxes and other costs.
Read the breakdown
See your margin %, markup %, and profit at a glance. Enter a Quantity above 1 for order totals, and watch the color-coded bar split revenue into cost, expenses, and profit.
Features
Two Calculation Modes
Calculate Margin analyzes existing pricing from cost and revenue; Set Price plans new pricing from cost and a target margin or markup.
Gross, Operating & Net Margins
Go beyond gross margin — add operating expenses and taxes to see your operating and net (bottom-line) profitability.
Margin & Markup Toggle
In Set Price mode, target a margin (% of revenue) or a markup (% of cost). The calculator always shows both values.
Quick Preset Buttons
One-click presets for 10%, 20%, 30%, 50%, 75%, and 100% make fast pricing decisions in Set Price mode.
Visual Breakdown Bar
A color-coded bar shows how revenue splits between cost, expenses, and profit, so healthy or thin margins are obvious at a glance.
Batch Quantity Totals
Enter a quantity to instantly see total revenue, total cost, and total profit across multiple units — handy for orders and inventory.
Currency Picker
Auto-detects your local currency and formats numbers accordingly; switch currencies anytime from the picker.
Real-Time Results
Every figure recalculates the moment you change an input — no submit button, with a built-in margin vs. markup reminder.
Frequently Asked Questions
How do you calculate profit margin?
Subtract cost from revenue to get profit, then divide profit by revenue and multiply by 100: (Revenue − Cost) / Revenue × 100. For example, a $100 sale on a $60 cost gives $40 profit and a 40% margin. Just enter cost and revenue and the calculator does it instantly.
What is the difference between margin and markup?
They measure the same profit from different bases. Margin is profit as a percentage of revenue; markup is profit as a percentage of cost. Markup is always the higher number for the same sale — a 50% markup equals a 33.3% margin. The calculator shows both at once.
What is a good profit margin?
It depends on your industry. Retail often sees 2–5% net margins, while software companies can reach 20–30% or more. A "good" margin reflects your business model, costs, and growth stage — use the calculator to compare your numbers against the benchmarks that matter to you.
What's the difference between gross, operating, and net margin?
Gross margin counts only the direct cost of goods. Operating margin also subtracts operating expenses like rent and salaries. Net margin subtracts everything, including taxes, for true bottom-line profit. Switch the margin type to add the expense fields you need.
How do I find the selling price from a desired margin?
Switch to Set Price mode, enter your cost, choose Margin or Markup, then type a target percentage or tap a preset. The calculator returns the required selling price along with the resulting profit and the matching margin/markup.
Can a profit margin be negative?
Yes. A negative margin means you're selling below cost, at a loss. That can be intentional during a promotion or clearance, but a sustained negative margin signals a pricing or cost problem worth fixing.
Why can't margin reach 100% or higher?
A 100% margin would require zero cost, which is impossible for any real product. In Set Price mode, entering a margin of 100% or more shows "—" because no finite selling price can achieve it. Markup, by contrast, can exceed 100%.
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