Profit Margin Calculator
Profit, margin and markup from cost and price, or the price you need for a target margin.
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- Selling price
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- Profit
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- Margin
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- Markup
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Profit margin formulas
- Profit = price − cost
- Margin = profit ÷ price × 100
- Price for a target margin = cost ÷ (1 − margin ÷ 100)
Tips for online sellers
- Add marketplace fees, shipping and payment fees to the cost to see your real margin.
- Check that discounts still leave a profit with the discount calculator.
- Think in markup instead? Use the markup calculator.
Frequently Asked Questions
How do I calculate profit margin?
Profit margin = (price − cost) ÷ price × 100. Selling for 100 something that cost 60 gives 40 profit and a 40% margin.
What price do I need for a 40% margin?
Price = cost ÷ (1 − margin ÷ 100). With a cost of 60: 60 ÷ 0.6 = 100. Choose "Price from a target margin" to work it out.
Margin or markup: what is the difference?
Margin is profit as a share of the price; markup is profit as a share of the cost. The same sale (cost 60, price 100) has a 40% margin but a 66.7% markup. Mixing them up is a common reason prices end up too low.
Is this gross or net margin?
Gross margin: price minus the cost of the product. For net margin, include all costs (shipping, platform fees, ads, rent) in the cost field.