Profit Margin Calculator
Enter a cost price and selling price to instantly get the profit amount, gross margin percentage, and markup percentage — or work backward from a target margin to find the right selling price.
All calculations happen on your device — no financial figures are sent to a server.
What this tool does
Calculates profit, profit margin and markup from a selling price and a cost — two figures that are routinely confused with each other.
When to use it
- Pricing a product and wanting to know your real margin.
- Checking whether a price achieves a target margin.
- Comparing margins across products.
- Converting between thinking in margin and thinking in markup.
How to use it
- Enter the "Selling price (revenue)".
- Enter the "Cost".
- Read the "Profit", the "Profit margin" and the "Markup".
A practical example
Input
A cost of 100 and a selling price of 150.
Output
A profit of 50, a profit margin of 33.3%, and a markup of 50%.
This is the point of the tool: the two are not the same figure. Margin is measured against the selling price and markup against the cost — confusing them makes you believe your profit is larger than it is.
Limitations
- It works on the cost you enter; leaving out indirect costs such as shipping and storage inflates the apparent margin.
- It excludes taxes and platform fees.
- A single product's margin is not the profitability of the business.
Privacy and processing
Your cost and selling price are worked out locally — useful, since pricing is not something to hand to a third party.
Technical notes
- Margin divides by the selling price and markup divides by the cost, which is exactly why the two figures always differ.