Profit Margin Calculator
Find profit, gross margin and markup from your cost and selling price, or work backwards from a target margin to set the right selling price.
Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit measured against revenue (the selling price), while markup is profit measured against cost. A 50% markup on a $40 item gives a $60 price, but that is only a 33.3% margin. Both describe the same profit from different angles.
How do I price for a target margin?
Switch to the "Find selling price" mode, enter your cost and the profit margin you want to hit, and the calculator returns the selling price using price = cost / (1 - margin / 100), plus the equivalent markup.
Is gross margin the same?
Yes. With a single product cost and selling price, this computes gross margin from cost and revenue. It does not subtract overheads, shipping or taxes, so net margin will be lower than the figure shown here.
Understanding the Profit Margin Calculator
The Profit Margin Calculator turns a product's cost and selling price into the numbers that matter for pricing: profit, gross margin, and markup. Enter what an item costs you and what you sell it for, and it instantly shows the profit per unit, the profit margin (profit as a percentage of revenue), and the markup (profit as a percentage of cost). Add an optional quantity to see total profit across a batch. A second mode works in reverse: give it a cost and the margin you want to earn, and it returns the exact selling price to charge. Every money figure respects your chosen currency, and results export to copy, CSV, or print.
How it works
In the default Cost & price mode you enter your unit cost and selling price. The tool subtracts cost from price to get profit, then divides that profit by revenue for the margin percentage and by cost for the markup percentage. Supplying an optional quantity multiplies profit by units to show total profit. The Find selling price mode flips the problem: you enter the cost and a target margin, and it computes the price needed to hit that margin, along with the equivalent markup. Inputs are validated gently inline, division by zero is guarded, and the target margin is kept below 100% so the price stays finite. Results update on demand and can be copied, downloaded as CSV, or printed.
Worked example
Suppose an item costs you $40 and you sell it for $60. Profit is $60 − $40 = $20. The margin is $20 ÷ $60 = 33.3%, while the markup is $20 ÷ $40 = 50%. Sell 100 units and total profit is $2,000. To instead hit a 40% margin on that $40 cost, switch modes: price = $40 ÷ (1 − 0.40) = $66.67, which is a 66.7% markup.
Tips & common mistakes
- Margin and markup are not the same: a 50% markup is only a 33.3% margin, so always confirm which one a supplier or report means.
- Use the Find selling price mode to price new products to a target margin instead of guessing a markup.
- This is gross margin only; subtract shipping, fees, and overhead separately to estimate true net profit.
- Margin can never reach 100% unless cost is zero, which is why the target margin field caps below 100.
- Switch your currency before calculating so exported results and copied figures carry the right symbol.
- Enter a realistic quantity to see total batch profit, which is handy for bulk orders and inventory planning.
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Reviewed by the TopOpenTools editorial team · Last updated June 2026. These tools provide general estimates for educational purposes only and are not financial, tax, insurance, investment, or medical advice. Verify important decisions with a qualified professional.