Profit Margin Calculator
Turn cost and price into margin and markup instantly.
Profit margin tells you what share of each sale you actually keep after covering the cost of the product. It is the foundation of every pricing decision, and confusing margin with markup is one of the most common (and expensive) mistakes in retail and ecommerce.
Enter your cost and selling price below to see gross profit per unit, your profit margin as a percentage of revenue, and the equivalent markup on cost.
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Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. A product that costs $50 and sells for $100 has a 50% margin but a 100% markup — same dollars, very different percentages.
What is a good profit margin?
It depends on the industry. Grocery and electronics run on thin single-digit margins, while software and luxury goods can exceed 70%. For many small product businesses, a gross margin of 40–60% is a healthy target.
How do I price a product for a target margin?
Price = Cost ÷ (1 − desired margin). To hit a 60% margin on a $30 item: $30 ÷ (1 − 0.60) = $75.