Profit Margin Calculator
Turn cost and price into gross profit, margin and markup in one screen.
About the Profit Margin Calculator
The Profit Margin Calculator takes a product cost and either a selling price or a target margin, then returns the gross profit, the margin percentage and the markup percentage together — the three numbers people constantly confuse. Use price mode to check what you already charge, or margin mode to find the price you should charge to hit a target margin.
Frequently asked questions
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. A 50% markup on a $10 cost gives a $15 price, but that is only a 33% margin. This tool shows both at once so they are never confused.
Switch to margin mode, enter your cost and the margin you want, and the calculator returns the price you need to charge. The formula is price = cost ÷ (1 − margin), where margin is expressed as a decimal.