Profit Margin Calculator
Price your products with confidence. Enter cost and selling price to see your profit, margin percentage and markup percentage — free, instantly, in your browser.
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Your margin
Margin = profit ÷ selling price. Markup = profit ÷ cost price. They are different numbers — a 40% margin is a 66.7% markup on the same sale.
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How to use
- Enter what the product costs you.
- Enter the price you sell it for.
- Click Calculate margin to see profit, margin % and markup %.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of the cost. On a $60 cost sold for $100, the margin is 40% but the markup is 66.7%.
What is a good profit margin?
It varies by industry — groceries run on thin margins around 2–5%, while software and digital products can exceed 70%. Compare with businesses like yours, not with other industries.
How do I set a price from a target margin?
Price = cost ÷ (1 − margin). For a 40% margin on a $60 cost, price = 60 ÷ 0.6 = $100.
Does this include taxes or fees?
No — it uses the cost and price you enter. Add taxes, shipping and platform fees into your cost for a true margin.