Profit Margin Calculator
Turn cost and price into profit, margin, and markup — or set a target margin and get the price to charge.
✏️ These numbers were filled in from a shared link — change anything to make it your own.
Margin vs markup — don’t mix them up
Margin is profit ÷ price. Markup is profit ÷ cost. The same $5 profit on a $10 item is a 33% margin but a 50% markup. Quoting markup while thinking margin is a classic way to leave money on the table.
margin = (price − cost) ÷ price · price for margin m = cost ÷ (1 − m)
This is gross margin — remember to also subtract marketplace fees, shipping, and returns for your true margin.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. A product that costs $10 and sells for $15 has a 33% margin but a 50% markup — same dollars, different base. Confusing them is a common way sellers underprice.
How do I calculate profit margin?
Subtract cost from price to get profit, then divide by the price and multiply by 100. ($15 − $10) ÷ $15 = 33% margin.
What price gives me a target margin?
Divide your cost by (1 − target margin). To hit a 40% margin on a $10 item: $10 ÷ 0.60 = $16.67. Use the target-margin field above to get it instantly.
What is a good profit margin?
It varies by product and channel, but many physical-product sellers aim for 30–50% margin after all costs to stay healthy once fees, returns, and marketing are included.