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Margin Calculator

Easily calculate profit margin, cost, and selling price to ensure profitability.

What do you want to calculate?

Gross Profit

$0.00

Markup

0%

Why Use This Tool? ✅

Flexible Calculations

Instantly find any missing variable—cost, margin, or price—by providing the other two.

Smarter Pricing

Make informed pricing decisions to ensure every sale meets your profitability goals.

Business-Friendly

An essential tool for retail, e-commerce, freelancers, and anyone running a business.

Accurate & Instant

Avoid manual errors with instant, reliable calculations based on standard business formulas.

Margin vs. Markup: The Keys to Profitability 📈

Understanding and correctly calculating profit margin is fundamental to building a sustainable business. It tells you how much profit you make from each sale relative to your revenue. This calculator not only finds your margin but also helps you work backward to set prices effectively.

What is Profit Margin?

Profit Margin is the percentage of revenue that you keep as gross profit. It is always calculated as a percentage of the selling price.

Margin % = ((Selling Price - Cost) / Selling Price) * 100

For example, if you sell a product for $100 and it cost you $75, your profit is $25. Your profit margin is ($25 / $100) * 100 = 25%.

Understanding the Difference: Margin vs. Markup

This is a common point of confusion. While both measure profitability, they use different bases for their calculation.

  • Margin is profit as a percentage of the selling price.
  • Markup is profit as a percentage of the cost.

Using the same example: a product that costs $75 and sells for $100 has a $25 profit.

  • The Margin is ($25 / $100) = 25%.
  • The Markup is ($25 / $75) = 33.3%.

As you can see, the markup percentage is always higher than the margin percentage for a profitable item. Our tool calculates both to give you a complete picture.

How to Use This Calculator for Pricing

This tool's real power comes from its ability to work backward. If you know your costs and have a target profit margin you need to achieve, you can use it to instantly determine the minimum selling price. Simply select "Calculate Selling Price," enter your cost and target margin, and the calculator will tell you what price you need to charge to be profitable.