Calculate profit margin, markup, profit, or the selling price you need to hit a target margin.
Enter the values you know to see your margin.
How we got this
How to calculate profit margin
Subtract total cost from selling price to find profit. Then divide profit by selling price. With a $60 cost and $100 selling price, profit is $40 and margin is 40%.
Profit margin formula
Profit = selling price − cost. Margin = (selling price − cost) ÷ selling price × 100. Include direct per-sale costs for a more useful result.
Margin vs markup
Margin measures profit against the selling price. Markup measures profit against cost. A $60 cost sold for $100 has a 40% margin and a 66.67% markup. A 40% markup makes an $84 price, which is only a 28.57% margin.
How to calculate selling price from margin
Divide cost by one minus the target margin as a decimal: selling price = cost ÷ (1 − margin). A $60 cost at a 40% target margin needs a $100 selling price.
Gross margin vs net margin
This tool calculates margin from the costs you enter. With direct product or service cost, it resembles a gross per-sale margin. Net profit margin can also include operating expenses, salaries, rent, taxes, and interest.
How to use it
Choose your goal
Check a current margin, set a selling price, or find the most you can spend per sale.
Enter direct per-sale values
Add cost and price, or a target margin. Shipping, packaging, fees, and other fixed costs are optional.
Use the one clear result
Read margin, required selling price, or maximum total cost, then open the calculation if you want the formula.
Questions
How do I calculate profit margin?
Subtract cost from selling price, divide the profit by selling price, then multiply by 100.
What is the difference between margin and markup?
Margin measures profit against selling price; markup measures profit against cost.
How do I calculate selling price for a target margin?
Divide total cost by one minus the target margin as a decimal.
Is a 40% margin the same as a 40% markup?
No. A 40% markup is lower than a 40% margin because the percentage uses cost rather than selling price.
Can profit margin be negative?
Yes. A negative margin means the selling price is below the costs you included.
Can profit margin be 100%?
A 100% margin is possible only when total cost is zero; a positive cost cannot reach it.
What is gross profit margin?
It commonly measures profit after direct costs but before wider operating expenses.
What costs should I include?
Use direct fixed per-sale costs such as product cost, shipping, packaging, fees, and other costs you pay for each sale.
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