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Finance tool

Profit Margin Calculator

Enter what an item costs you and what you sell it for to see your profit, margin and markup.

Free foreverNo sign-upPrivate: runs in your browserUpdated November 2026
%
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

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.