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Profit Margin Calculator

A free online profit margin calculator that computes profit, margin %, and markup % from cost and selling price — or solves backward for the selling price or maximum cost needed to hit a target margin. Includes a per-unit and total-profit breakdown.

Margin vs. markup — the difference that trips everyone up

Profit margin is profit as a percentage of your selling price (revenue): (Selling price − Cost) ÷ Selling price × 100. Markup is profit as a percentage of your cost: (Selling price − Cost) ÷ Cost × 100. The same $40 profit on a $60 cost and $100 selling price is a 40% margin but a 66.7% markup — two very different numbers describing the same sale.

How the calculator solves for selling price or cost

If you know your cost and want a target margin, the calculator finds the selling price using Selling price = Cost ÷ (1 − Margin ÷ 100). If you know your selling price and want a target margin, it finds the maximum cost using Cost = Selling price × (1 − Margin ÷ 100). Both are algebraic rearrangements of the margin formula.

Scaling to total profit

Enter the number of units sold to see total revenue, total cost, and total profit alongside the per-unit numbers — useful for checking whether a per-unit margin actually adds up to a meaningful profit at your expected sales volume.

Common Mistakes to Avoid

Confusing margin with markup

Solution:

They use different denominators (selling price vs. cost) and are never the same number except at 0% — always check which one a target or competitor figure is quoting.

Setting a markup % when a margin % target was intended

Solution:

A '50% markup' and a '50% margin' produce different selling prices for the same cost — a 50% margin needs a 100% markup to achieve, since Selling price = Cost / (1 - 0.5) = Cost x 2.

Forgetting that margin can't reach 100%

Solution:

Margin approaches but never reaches 100%, since that would require zero cost. Entering a margin of 100% or higher when solving for selling price has no valid answer.

Ignoring per-unit costs beyond the direct cost of goods

Solution:

Shipping, packaging, payment processing fees, and returns all reduce real margin below what a simple cost-vs-price calculation shows.

Using average cost instead of the cost of the specific item

Solution:

Margins can vary significantly across a product line — calculating from an average cost hides which products are actually profitable.

Assuming a higher price always means a higher margin

Solution:

Margin depends on the relationship between cost and price, not price alone — a higher-priced item with a proportionally higher cost can have a lower margin than a cheaper item.

Frequently Asked Questions

Profit margin is profit divided by selling price (revenue); markup is profit divided by cost. For the same sale, margin is always a smaller number than markup (except at 0%), because selling price is always larger than cost when there's a profit.
Margin % = (Selling price - Cost) / Selling price x 100. For example, a $100 selling price and $60 cost gives a $40 profit and a 40% margin.
Selling price = Cost / (1 - Target margin / 100). Choose 'Selling price' in the calculator, enter your cost and desired margin, and it solves this for you.
Cost = Selling price x (1 - Target margin / 100). Choose 'Cost' in the calculator, enter your selling price and desired margin.
Markup is calculated on the smaller number (cost), while margin is calculated on the larger number (selling price), so markup is mathematically always higher than margin for the same sale whenever there is a profit.
No — it calculates pure margin and markup from the cost and selling price you enter. Add any additional per-unit costs into your cost figure to get a more complete picture.
No — every calculation runs locally in your browser. Nothing you enter is uploaded, logged, or stored on any server.

Free Online Profit Margin Calculator

Work out your profit margin and markup instantly from cost and selling price — or solve backward: enter a cost and target margin to find the selling price you need, or enter a selling price and target margin to find the maximum cost you can afford.

What You Get

  • Profit margin % and markup % calculated side by side, so you never confuse the two
  • Solve for margin, selling price, or cost — whichever one you're missing
  • Profit per unit and total profit across any quantity sold
  • A cost-vs-profit visual breakdown
  • A plain-English explanation of the difference between margin and markup for your exact numbers

Who Uses This Calculator

Retailers and e-commerce sellers pricing products, freelancers and service businesses setting rates, and anyone who needs to hit a target profit margin without confusing it with markup.