%
Profit margin40%
You keep $40.00 from every sale.
Profit per item$40.00
Markup66.7%
Price for 40% margin$100.00
Break-even price$60.00
● calculated in 0.10 msruns in your browserupdated 07:35:33
Visualise
Where the selling price goes
Breakdown
Table
The maths
Formula
This is the exact calculation the tool runs.
Margin = Price − CostPrice × 100
Markup(Price − Cost) ÷ Cost × 100
Price for targetCost ÷ (1 − Margin/100)
ProfitPrice − Cost
Practice
Worked examples
Click "Try it" to load an example into the tool.
Online store item
Cost price: 12Selling price: 29.99Target margin: 50 %
60%
Restaurant dish
Cost price: 4.5Selling price: 15Target margin: 70 %
70%
Reseller
Cost price: 80Selling price: 100Target margin: 30 %
20%
Step by step
How to use the Profit Margin Calculator
Enter your cost
Everything you pay to make or buy the item.
Enter your selling price
What the customer pays.
Set a target margin
See the price you need to reach it.
Questions
Frequently asked questions
What is 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% markup is a 33.3% margin.
What is a good profit margin?
It depends on the industry. Many retail shops aim for 25–50%, software can be much higher.
Should cost include shipping and fees?
Yes. Include every cost per item to get a true margin.