Margin and profit calculator.
Enter your cost and selling price to see your profit, margin and markup. Or start from the margin or markup you want, and get the price to charge. Mixing up margin and markup is one of the most common pricing mistakes, and this shows you both.
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- Runs in your browser. Nothing you enter is sent to us.
Results
How to use the margin & Profit Calculator
- Choose what you know: cost and price, cost and target margin, or cost and target markup.
- Enter the amounts, and the quantity if you want totals.
- Read your profit, margin, markup and selling price.
Margin and markup are not the same
Both compare profit with something else. Margin compares profit with the selling price. Markup compares profit with the cost. Buy for 100 and sell for 150, and you make 50 profit: that's a 33.3% margin and a 50% markup. If you want a 30% margin and add 30% to your cost, you'll only get 23%. To hit a margin, divide the cost by (1 minus the margin): 100 ÷ 0.7 = 142.86.
The formulas
- Profit = selling price − cost
- Margin % = profit ÷ selling price × 100
- Markup % = profit ÷ cost × 100
- Price from margin = cost ÷ (1 − margin ÷ 100)
- Price from markup = cost × (1 + markup ÷ 100)
Make sure your cost is the real cost
This is a gross margin if you enter only the product's cost. Delivery, packaging, payment fees, returns, staff and rent all come out of it, and sales tax isn't your profit. In Pakistan, cash-on-delivery returns can quietly take a big bite too. Add per-order costs to get a truer figure, and use the PayPal fee calculator if you're paid that way.
Your margin also tells you what you can afford for ads. The ROAS calculator shows your break-even return, and the CPC calculator shows the most a click can cost.
About the margin & Profit Calculator.
What is a good profit margin?
It depends entirely on the industry. Services and software often run much higher margins than groceries or electronics. Compare with similar businesses, and make sure the margin covers all your running costs.
How do I convert markup to margin?
Margin = markup ÷ (100 + markup) × 100. A 50% markup is a 33.3% margin. The calculator shows both.
Can margin be over 100%?
No. Even with no cost at all, profit equals the price, which is a 100% margin. Markup has no such limit.
Should tax be included in the price?
Enter prices without sales tax, since the tax belongs to the government and not to you.
Is this gross or net margin?
It is gross margin if you enter only the cost of the product. For net margin, include all your costs per sale.
You might also need these.
ROAS Calculator
Work out return on ad spend, real profit after costs, and the break-even ROAS for your margin.
Use the toolPayPal Fee Calculator
What you receive after PayPal fees, and what to invoice to receive an exact amount. Rates are editable.
Use the toolCPC Calculator
Work out your cost per click, and the highest CPC you can afford before ads stop making money.
Use the toolWant this done for you?
Free tools show you what to fix. We fix it, measure it, and keep it working while you run the business.