Profit Margin Calculator
Margin, markup and target-price maths in one place.
Profit per unit
$60
Gross margin
60.0%
Markup
150.0%
Price for 50% margin
$80
margin = (price − cost) ÷ price · markup = (price − cost) ÷ cost
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About this tool
Margin is profit as a share of the selling price; markup is profit as a share of cost. Confusing the two is the most common pricing error, and it always loses money.
Margin vs markup
A 50% markup on a $100 cost gives a $150 price and only a 33% margin. To achieve a 50% margin you need a 100% markup.
Setting a target price
Enter your cost and desired margin to get the price directly, rather than iterating with markup guesses.
How to use Profit Margin Calculator
- 1
Open Profit Margin Calculator
Everything runs on this page — there is nothing to install and no account required to use the free features.
- 2
Add your input
Paste or enter your values in the panel above. The tool updates as you type, so you can iterate quickly.
- 3
Review the output
Check the result, copy it with one click, and adjust the options until it matches what your system expects.
- 4
Take it further
Use the business & ops tips below to make the result production-ready, then unlock the gated extras via the form above.
Best practices
- Use consistent time periods and definitions — mixing monthly and annual inputs silently breaks every downstream number.
- Model a pessimistic and an optimistic case, not just the number you hope for.
- Use gross margin rather than revenue whenever a decision involves cash.
- Re-run the model quarterly with fresh inputs; stale assumptions age badly.
Why Profit Margin Calculator matters
The difference between a healthy business and a leaking one is usually a couple of percentage points that nobody modelled.
Running the numbers before a pricing, hiring or spend decision turns an argument into an answer.
Related free & paid tools
| Tool name | Type | Key features | Link |
|---|---|---|---|
| Wave AccountingOffer | Free | Free bookkeeping with margin-ready reports | Visit |
| QuickBooksOffer | Paid | COGS tracking and product-level profitability | Visit |
| XeroOffer | Paid | Accounting with inventory and margin reporting | Visit |
Links marked Offer may be partner links. They cost you nothing extra and never affect which tools we recommend.