Skip to content
snip tools

Profit margin calculator

Work out profit, margin and markup from cost and price — or solve for a target margin.

Runs 100% in your browser
Profit
Profit margin
Markup

How to calculate profit margin

  1. Enter cost and price. Type your unit cost and selling price.
  2. Read margin and markup. Profit, margin % and markup % update live.
  3. Or solve for price. Enter a target margin to get the required price.

Understanding margin vs markup

Margin and markup describe the same profit from two angles. Markup answers "how much do I add on top of cost?" while margin answers "what share of the price is profit?" Pricing from markup is intuitive, but margin is what shows up in your accounts, so it pays to know both. Use this to sanity-check the rates in your quotes and invoices before you send them.

For informational purposes only — not financial advice.

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 the cost. A 50% markup on a $100 cost gives a $150 price and a 33.3% margin — the two numbers are not the same.
How is profit margin calculated?
Profit = price − cost. Profit margin = profit ÷ price × 100. Markup = profit ÷ cost × 100. This calculator computes all of them as you type.
Can I work out the price from a target margin?
Yes — enter your cost and a target margin and the calculator gives the price you need to charge to achieve it.
Is the calculation done privately?
Yes, entirely in your browser. No figures are sent anywhere.