Calculate profit margin, markup, and selling price from cost and revenue.
Profit as a percentage of the selling price.
Example: Cost $60, sell $100 → Margin = 40%
Profit as a percentage of the cost.
Example: Cost $60, sell $100 → Markup = 66.67%
This profit margin calculator helps you understand the true profitability of your products or services. Use the first mode to enter your cost and selling price to see the resulting margin, markup, and profit. Use the second mode to enter your cost and desired margin percentage to find out exactly what selling price you need to charge. Both modes show a visual breakdown of cost versus profit as proportional segments.
Profit margin tells you what percentage of each dollar of revenue is actual profit. A 40 percent margin means you keep 40 cents of every dollar after covering the cost of goods. This is the metric most investors and analysts care about because it shows how efficiently a business converts revenue into profit. Healthy margins vary widely by industry: software companies often achieve 70 to 90 percent gross margins, while grocery stores operate on razor-thin margins of 1 to 3 percent.
Confusing margin with markup is one of the most expensive pricing errors a business can make. Suppose you buy a product for $60 and want a 40 percent profit. If you mistakenly apply a 40 percent markup, you sell at $84, giving you $24 profit and a 28.6 percent margin, not the 40 percent you wanted. To achieve a true 40 percent margin, you need to sell at $100, which is actually a 66.67 percent markup. This calculator shows both numbers side by side so you always know exactly where you stand.
Want to focus on markup instead? Try the markup calculator. Need to calculate ROI on an investment? Use the ROI calculator.