- Margin = profit ÷ selling price × 100 — a $100 sale costing $40 gives $60 profit, a 60% margin.
- Markup = profit ÷ cost × 100 — the same example is a 150% markup on cost.
- Target margin: price = cost ÷ (1 − margin). A 30% margin on a $40 cost means selling at $57.14.
- Margin is what lands in your pocket per sale; markup is a pricing multiple — the calculator shows both so you can quote either.
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Profit Margin Calculator
Enter your unit cost and selling price to instantly see gross profit, margin percentage and markup — the two numbers sellers mix up most.
Margin & markup from cost and price
Profit: $60 | Margin: 60% | Markup: 150%
What price gives me a target margin?
Sell at: $57.14
How the margin calculator works
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Frequently asked questions
What's the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of the cost. A 50% margin equals a 100% markup — same $50 profit on a $100 sale that cost $50.
Last updated: October 2026.
What is the profit margin formula?
Gross margin % = (selling price − cost) ÷ selling price × 100. A $100 product costing $70 has a 30% gross margin.
What is a good profit margin?
It varies by industry: retail is often 2–10% net, software 70–90% gross, restaurants 3–9% net. The healthy question is whether it's stable and covers your fixed costs.
How do I price for a 40% margin?
Divide cost by (1 − 0.40). A $30 cost needs a price of $30 ÷ 0.60 = $50 to leave a 40% margin.
Related tools
- Sales tax calculator — US state and local sales tax
- Invoice generator — create a clean invoice
- Discount calculator — markdown pricing
Estimates are for guidance only and are based on published 2026/27 rates. Always confirm with a qualified professional for financial decisions.