Profit Margin Calculator
Margin and markup are not the same number — mixing them up quietly eats profit on every quote and invoice. This free profit margin calculator does the job of a gross margin calculator and a markup calculator in one, and it works both ways: enter cost and selling price to get your gross profit, margin % and markup %, or enter your cost and the margin you want, and it tells you the exact selling price to charge. It is built for shop owners, freelancers, contractors and online sellers who price things every day and want the maths done right in seconds.
Cost & price → margin
Cost & target margin → selling price calculator
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of your cost. Sell something for $100 that cost you $60 and your profit is $40 — that is a 40% margin but a 66.7% markup. Quoting with one while thinking in the other is one of the most common pricing mistakes small businesses make.
What is a good profit margin?
It depends heavily on the industry: grocery and restaurants often run on single-digit net margins, while services and digital products can exceed 50% gross margin. Use this calculator to check your own numbers per product or job — the right target is the one that covers your overheads, taxes and time, with something left over.
How do I calculate profit margin from cost and price?
Use the profit margin formula: margin = (selling price − cost) ÷ selling price × 100. If something costs $60 and sells for $100, the margin is (100 − 60) ÷ 100 = 40%. Note that a 100% margin is impossible — it would mean the item cost you nothing, so the price would have to be infinite; even a 90% margin already means pricing at ten times your cost.
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