Profit Margin Calculator
Work out profit margin (profit as a percentage of revenue) and markup (profit as a percentage of cost) from cost and selling price. Or set a target margin and find the selling price you need. Useful for pricing products and reviewing profitability.
Calculate margin and markup
How it works
Profit = Revenue − Cost. Margin % = (Profit / Revenue) × 100. Markup % = (Profit / Cost) × 100. Margin is used when you think in terms of revenue (e.g. “we want 30% margin”); markup is used when you start from cost (e.g. “add 50% to cost”).
Example: Cost $60, selling price $100. Profit = $40. Margin = 40/100 = 40%. Markup = 40/60 ≈ 66.67%. To achieve a 40% margin with cost $60, set price = 60 / (1 − 0.40) = $100.
When to use it
Use this when setting prices, comparing products, or checking that your margins match expectations. Different industries use margin or markup by convention; this tool gives both so you can communicate in either language.
Frequently asked questions
- What is the difference between margin and markup? Margin is profit as % of revenue (selling price). Markup is profit as % of cost. So a 50% margin means profit is half of revenue; 50% markup means you add half of cost to get price.
- How do I find selling price from cost and margin? Selling price = Cost / (1 − Margin/100). Example: cost $60, 40% margin → Price = 60/0.60 = $100.