Profit Margin Calculator
Find the gross profit margin on a product, or work backwards to the price you need for a margin you want. Choose what you already know (cost and price, cost and target margin, or price and margin) and the calculator returns the missing figure with the profit, the margin and the equivalent markup.
Calculate Profit Margin
Margin and profit
Formula and working
How to Use the Profit Margin
- Choose what you know from the list.
- Enter the two values shown (cost, selling price or margin).
- Press Calculate to see profit, gross margin, markup and the missing value.
About This Tool
Shop owners and online sellers pricing products, freelancers quoting jobs, and students learning the difference between margin and markup.
Input: Numbers · Output: Margin, profit and price.
Features and Limitations
Features
- Three directions: margin from price, price from margin and cost from margin.
- Shows margin and markup together so they are not confused.
- Each formula written out with your numbers.
- Choice of currency symbol and number format.
Limitations
- Gross margin only: overheads, tax, shipping and fees are not included unless you add them to the cost.
- A margin must be below 100%.
- Not financial or pricing advice; it only does the arithmetic on your figures.
- Results are computed in your browser; nothing you enter is sent to a server.
Example
An item costing $60 sold for $100 makes $40 profit: a 40% gross margin and a 66.67% markup. To earn a 25% margin on the same $60 cost, sell at $60 ÷ 0.75 = $80.
Frequently Asked Questions
How is profit margin calculated?
Gross margin = (Selling price − Cost) ÷ Selling price × 100. It tells you what share of each sale is profit.
How do I find the price for a target margin?
Price = Cost ÷ (1 − Margin). For a 30% margin on a cost of 70, the price is 70 ÷ 0.7 = 100.
Why is my margin lower than my markup?
Margin divides profit by the price; markup divides it by the cost. Because the price is larger than the cost, the margin is always the smaller percentage.
Is this net profit margin?
No. Net margin also subtracts operating expenses, interest and tax. Add those to the cost if you want a rough net figure.
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