Profit Margin Calculator
Enter what a product costs you and what you sell it for to see your profit, profit margin and markup.
Your numbers
Estimate for information only, not professional advice. Last reviewed .
How we calculate it
Profit = revenue − cost. Profit margin = profit ÷ revenue × 100, the share of each sale you keep. Markup = profit ÷ cost × 100, the percentage added on top of cost.
A product that costs $60 and sells for $100 has a 40% margin and a 66.7% markup, which is why the two should never be mixed up.
Assumptions and limits
- This is gross margin if the cost is only the direct cost of goods. Include overhead for net margin.
- Margin can never exceed 100%, but markup can.
Frequently asked questions
What is the difference between margin and markup?
Margin is based on the selling price; markup is based on cost. The same product always has a higher markup percentage than margin percentage.
What is a good profit margin?
It varies by industry. Retail often runs 20 to 50 percent gross margin, software is much higher and grocery is much lower.
How do I set a price for a target margin?
Divide your cost by (1 − target margin). For a 40% margin on $60 cost, price = 60 ÷ 0.6 = $100.
Related calculators
- Markup CalculatorEnter your cost and the markup you want to add to get the selling price, profit per unit and the margin that markup produces.
- Break-Even CalculatorLearn how many units you must sell before you start making a profit.
- ROI CalculatorMeasure how much you gained or lost relative to what you put in.
- Discount CalculatorFind the final price after a sale, including an extra discount stacked on top and sales tax at the register.
Worked example (a fixed example using the starting numbers, it does not change as you type)
Inputs: Cost ($) = 42; Selling price / revenue ($) = 70.
- Profit margin 40%
- Profit $28.00
- Markup 66.67%
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