Profit Margin Calculator
Calculate profit margin percentage, markup percentage, and profit amount from cost and selling price. Free to use, no signup required for occasional use.
What is the Profit Margin Calculator?
The Profit Margin Calculator computes three related but distinct figures from just two inputs: your cost price and your selling price. It calculates the profit amount (the simple difference between the two), the profit margin percentage (profit as a percentage of the selling price), and the markup percentage (profit as a percentage of the cost price). These last two numbers are easy to confuse but mean different things — margin tells you what portion of each sale is profit, while markup tells you how much you added on top of cost — and mixing them up is a common pricing mistake for new business owners. This tool is useful for retailers, e-commerce sellers, service providers, and manufacturers who want to quickly check pricing decisions or compare profitability across products.
How to use it
Enter your cost price — what it costs you to acquire or produce the item. Enter your selling price — what you charge the customer. Click 'Calculate' to see the profit amount in currency, the profit margin percentage (based on selling price), and the markup percentage (based on cost price). Use these figures to compare pricing across products or to check whether a proposed price hits your target margin.
Frequently asked questions
What's the difference between margin and markup?
Margin expresses profit as a percentage of the selling price, while markup expresses profit as a percentage of the cost price — the two numbers are always different for the same sale.
What's a good profit margin?
It varies widely by industry — retail often runs 20-50%, while some service businesses run much higher, so compare against norms in your specific industry.
How do I set a price for a target margin?
Divide your cost price by (1 minus your target margin as a decimal) to find the selling price needed to hit that margin.
Does this account for additional costs like shipping or fees?
No, it only compares the cost price and selling price you enter — include any additional costs in your cost price for a more complete margin figure.