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Profit Margin Calculator

Find margin, markup and profit — or the price you need for a target margin.

  • 100% free
  • Margin and markup

Currency

I know

$
$

Profit margin

38.46%

Profit $25.00 per sale

Margin
38.46%
Profit ÷ price
Markup
62.50%
Profit ÷ cost

Calculation

Margin = (price − cost) ÷ price · Markup = (price − cost) ÷ cost

  1. A 50% markup is a 33.3% margin; a 50% margin needs a 100% markup.

Last reviewed by the OnlineToolPro team

What is the Profit Margin Calculator?

Works out profit margin and markup from cost and price, or the selling price you need for a target margin or markup — and makes the difference between margin and markup clear.

How it works

How to use the Profit Margin Calculator

3 simple steps. No experience needed.

What can you use it for?

  • Price a product for a target margin.
  • Check the margin on a quote.
  • Convert between markup and margin.

Margin to markup and back

Markup = margin ÷ (1 − margin). Margin = markup ÷ (1 + markup). So a 25% margin needs a 33.3% markup, and a 100% markup gives a 50% margin.

FAQ

Frequently asked questions

What's the difference between margin and markup?

Margin is profit as a share of the price; markup is profit as a share of the cost. A 50% markup is only a 33.3% margin.

How do I price for a 40% margin?

Divide the cost by 0.6 (1 − 0.40). A product costing 30 needs a price of 50.

Related guides

Step-by-step help for getting more out of the profit margin calculator.

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