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Profit Margin Calculator

Get profit, margin and markup from cost and revenue.

Frequently Asked Questions

What is the difference between margin and markup?

Margin is profit divided by revenue (selling price), while markup is profit divided by cost. A product costing 60 and selling for 100 has a 40 percent margin but a 66.7 percent markup.

How do I price for a target margin?

Divide cost by (1 - target margin). For a 40 percent margin on a cost of 60, the price is 60 / 0.6 = 100. Simply adding 40 percent to cost would give a lower, incorrect margin.

What is a healthy profit margin?

It varies hugely by industry. Grocery retail often runs at 1 to 3 percent net margin, while software businesses can exceed 20 percent. Compare against your own sector, not a universal number.

Is the Profit Margin Calculator free, and is my data private?

Yes. It is completely free and every calculation runs locally in your browser, so the numbers and dates you enter are never uploaded, stored, or shared with anyone.

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