Profit Margin Calculator

Type in your cost and price (or a target margin) and instantly see your profit, margin, and markup — nothing leaves your browser.

📖 How it works & FAQ

What do you want to find?

Cost per unit ($)

Selling price / revenue ($)

Margin and markup are not the same number

Both start from the same profit — selling price minus cost — but they divide it by different things. Gross margin is profit divided by revenue: it tells you what share of every dollar a customer pays that you actually keep. Markup is profit divided by cost: it tells you how much you inflated the cost to get your price. A $10 item sold for $20 has a 50% margin but a 100% markup. Mixing the two up is one of the most common (and expensive) pricing mistakes small sellers make.

Work forwards or backwards

This calculator runs in both directions. If you already have a price, it shows your profit, margin, and markup instantly. If you only know your cost and the margin you want, switch modes and it solves the price for you using price = cost ÷ (1 − margin). That formula is why a 100% margin is impossible — you'd be dividing by zero, which is the math's way of saying "free product, infinite price."

Estimates only — this tool is not financial, tax, insurance, or legal advice.

How to use it

Pick a mode: find your margin from a known price, or find the price for a target margin.
Enter your cost per unit — include materials, production, packaging, and fees if you want a truer picture.
Enter your selling price (or your target margin percentage).
Read the result cards — they update live as you type, and nothing is sent anywhere.

FAQ

What's a good profit margin?: It varies wildly by industry. Retail and e-commerce often run 30–50% gross margins, restaurants lower, software much higher. Compare against your own category, not a universal number.
Is this gross or net margin?: Gross. It compares price to your direct cost per unit. Net margin also subtracts overhead like rent, marketing, and taxes, so it will always be lower.
Why can't I enter a 100% target margin?: A 100% margin means your cost is zero relative to price — the formula divides by zero. Anything at or above 100% has no valid price.
Should fees count as cost?: Yes, if you want a realistic margin. Marketplace fees, payment processing, and shipping you absorb all reduce what you keep, so fold them into the cost field.