Profit Margin Calculator

How this calculator works

Choose "From cost & selling price" if you already know what something costs and what it sells for, and want to see the profit, margin, and markup. Choose "From cost & target margin" if you know your cost and want to work out exactly what selling price gives you a specific profit margin.

Margin vs markup — the distinction that trips people up

Margin and markup both measure profit, but against different bases. Margin is profit divided by selling price. Markup is profit divided by cost. A 50% markup does not produce a 50% margin — it produces a 33.3% margin, because the same profit is a smaller share of the (larger) selling price than it is of the (smaller) cost. Mixing the two up is one of the most common pricing mistakes small businesses make.

A note on losses

If the selling price is lower than the cost, this calculator correctly shows a negative profit, margin, and markup — useful for spotting a product that's quietly being sold at a loss.