About the Profit Margin Calculator
This works out your profit and two key percentages — profit margin and markup — from an item's cost and selling price. It's a everyday tool for anyone pricing products or services: shop owners, freelancers, resellers, and small businesses checking whether a price leaves enough profit. Enter what something costs you and what you sell it for, and it shows the profit, the margin and the markup.
How it works — margin vs markup
- Profit = selling price − cost.
- Profit margin = profit ÷ selling price × 100 — profit as a percentage of the price.
- Markup = profit ÷ cost × 100 — profit as a percentage of the cost.
These two are often confused but aren't the same. An item costing $60 sold for $100 has a $40 profit: a 40% margin (40 ÷ 100) but a 66.7% markup (40 ÷ 60). Markup is always the larger number for the same profit.
Assumptions and behaviour
- Cost is what you pay; selling price is what the customer pays (revenue).
- Margin is based on the selling price; markup is based on the cost.
- Currency-agnostic; percentages show two decimals.
- A selling price below cost gives a negative profit and margin (a loss), which the tool shows as-is.
Limitations
- Cost should be your true cost. For an accurate margin, include all the costs of getting the item to the sale (purchase, shipping, fees) — this tool uses the single cost figure you enter.
- It calculates on one unit or one sale; it doesn't model volume, overheads, or blended margins across a product range.
- It doesn't subtract taxes, payment fees or returns from the profit.
- Don't confuse margin and markup when setting prices — a "50% markup" is only a 33% margin.
Privacy
The calculation runs entirely in your browser. Nothing is uploaded or stored.
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