Free Tool

Profit Margin Calculator

Enter your cost and selling price to instantly see your profit, margin, and markup.

$
What it costs you to produce or acquire the item.
$
What you charge the customer.
Or Work Backward: Find Selling Price
$
Selling Price Should Be
$0.00
Profit Margin
0%
Profit
$0.00
Markup
0%
Cost as % of Selling Price
0%

About the Profit Margin Calculator

Setting a price without knowing your actual profit margin is one of the most common mistakes small business owners, freelancers, and online sellers make. It's easy to assume that a healthy-looking selling price automatically means a healthy profit, but margin and markup are two different numbers that get confused constantly, and pricing based on the wrong one can quietly erode your profitability over hundreds of sales. This calculator gives you both numbers instantly so you always know exactly what you're actually earning.

Profit margin is your profit expressed as a percentage of your selling price, while markup is your profit expressed as a percentage of your cost price. A product with a 50% markup does not have a 50% margin, a mistake that catches out even experienced sellers when pricing manually. Enter your cost price and selling price above and the calculator instantly shows both figures side by side along with your actual profit amount, so there's no ambiguity about which number you're looking at.

The second calculator on this page works in reverse: if you already know what margin you need to hit to stay profitable, enter your cost price and target margin percentage and it tells you exactly what to charge. This is useful when you're setting prices for a new product line, quoting a client, or adjusting prices after your costs have changed, since it removes the guesswork and trial-and-error of manually testing different price points.

This tool is useful for e-commerce sellers pricing products, freelancers and agencies pricing services, and retailers setting markup on wholesale goods. Everything runs directly in your browser and nothing you enter is sent to a server, so feel free to test as many price scenarios as you need before settling on your final numbers.

Frequently Asked Questions

Yes, completely free with no signup and no limit on how many times you can recalculate.

Margin is profit divided by selling price. Markup is profit divided by cost price. They will always give different percentages for the same sale, which is why this calculator shows both.

It varies heavily by industry. Retail often runs 20-50%, services and software can run much higher, while wholesale and grocery often run in the single digits. Compare your margin against others in your specific industry rather than a general benchmark.

For the most accurate margin, your cost price should include everything that goes into getting the product or service ready to sell, not just the raw material or wholesale cost, so include packaging, shipping in, and any direct labor if relevant.

No. All calculations happen locally in your browser using JavaScript, nothing is sent to or stored on a server.

Enter your cost price and the profit margin percentage you want to achieve, and it instantly shows the exact selling price needed to hit that margin.

Related Tools

Rate This Tool

Your feedback helps us improve. It only takes a second.

Thanks for your feedback!