Profit Margin Calculator
About the Profit & Margin Calculator
Work out profit, profit margin, and markup from your cost and revenue figures in one place. It is designed for shop owners, freelancers, and e-commerce sellers who need quick pricing answers without a spreadsheet. Margin and markup are commonly confused: margin is profit as a percentage of the selling price, while markup is profit as a percentage of the cost. This calculator shows both so you can price with confidence.
This tool works in your browser: the files and text you use are processed on your device and are not uploaded.
How to use it
- Open the Profit & Margin tab.
- Enter the cost price, the selling price and any tax percentage that applies.
- Read the profit, the margin and the net income after tax.
Frequently asked questions
What is the difference between margin and markup?
Margin = profit ÷ selling price; markup = profit ÷ cost. If an item costs $50 and sells for $100, the profit is $50, the margin is 50%, and the markup is 100%. Using markup when you mean margin is one of the most common pricing mistakes.
How do I calculate a selling price from a target margin?
Selling price = cost ÷ (1 − margin). For a $60 cost and a 40% target margin: 60 ÷ 0.6 = $100. Enter your cost and target margin and the calculator does this for you.
What is a good profit margin?
It varies widely by industry. As a rough guide, a 5% net margin is considered low, 10% is healthy, and 20%+ is high. Retail gross margins often sit between 20% and 50%, while software can exceed 80%.
Does this account for taxes and overheads?
The calculator works with the cost and revenue numbers you enter. For net-profit analysis, include overheads, shipping, fees, and taxes in your cost figure.
This calculator is for informational and educational purposes only and does not constitute financial advice. Verify important figures with your bank, lender, or a qualified financial advisor.