Margin Calculator
Calculate profit margin from cost and price — see the margin percentage, profit, and required selling price.
Cost + markup % → sale price
Enter values above to see the result.
Markup ↔ Margin quick reference
About the Margin Calculator
Profit margin is the share of a selling price that is profit rather than cost, and it is one of the most important numbers in any business — it tells you how much you actually keep on each sale. This margin calculator works it out instantly: enter your cost and selling price to see the margin percentage and profit, or set a target margin to find the price you need to charge.
Margin is frequently confused with markup, and the difference matters. Margin is profit as a percentage of the selling price, while markup is profit as a percentage of the cost. The same money profit gives a smaller margin than markup, so quoting the wrong one can seriously misprice a product. This calculator is built around margin specifically, with the price-from-margin direction that businesses need for setting prices.
Use it to price products correctly, check whether a discount still leaves an acceptable margin, or compare profitability across items. It runs in your browser, so your figures stay private, and results update the moment you type.
Looking for more options? Open the full Markup, Margin & Discount Calculator — it’s the same tool with every feature.
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Frequently Asked Questions
How do I calculate profit margin?
Subtract the cost from the selling price to get the profit, then divide that profit by the selling price and multiply by 100. For example, a $40 item sold for $100 has a $60 profit and a 60% margin. The calculator does this instantly and can also work backwards from a target margin.
What is the difference between margin and markup?
Margin expresses profit as a percentage of the selling price; markup expresses the same profit as a percentage of the cost. Because the bases differ, markup is always the larger percentage for the same profit — a 50% margin is a 100% markup. Confusing them leads to underpricing, so it is important to be clear which you mean.
How do I find the price for a target margin?
Enter your cost and the margin percentage you want to achieve, and the calculator returns the selling price that delivers it. This is the practical direction for pricing — you know your cost and your desired margin, and you need the price to charge.
Understanding Profit Margin
Margin versus markup
Both describe profit but on different bases. Margin is profit ÷ selling price; markup is profit ÷ cost. For a product costing $50 and sold for $100, the profit is $50 — a 50% margin but a 100% markup. Mixing them up is a common and costly pricing error, so always confirm which percentage a figure refers to before applying it.
Why margin matters for pricing
Margin reveals how much of each sale you keep after the cost of the goods, which directly affects whether a business is viable once overheads are covered. Pricing to a target margin ensures every sale contributes the profit you need. It also lets you assess discounts: a deep discount can erase the margin entirely, turning a sale into a loss.
Gross versus net margin
The margin from cost and price is gross margin — profit before overheads like rent, wages and marketing. Net margin accounts for all those expenses and is usually much lower. Gross margin is the right tool for pricing individual products, while net margin measures overall business profitability. Knowing both prevents the trap of healthy product margins masking an unprofitable business.