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Profit Margin Calculator

Calculate margin, markup & selling price — live, in your browser.

Currency:

Enter your cost and desired margin to calculate the selling price you need to charge.

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Selling Price

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Revenue per unit

Cost

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Per unit

Gross Profit

—

Price − Cost

Margin %

—

Profit ÷ Revenue

Markup %

—

Profit ÷ Cost

Pricing Ladder

Required selling price at each margin target, based on your cost

Live
Margin Target Markup Selling Price Gross Profit
Margin vs. Markup — What's the difference?

Profit Margin

Margin = (Price − Cost) / Price × 100

Margin is profit expressed as a percentage of revenue (selling price). It tells you what share of each dollar earned is profit.

Example: Cost $10, Price $20 → Margin 50%

Markup

Markup = (Price − Cost) / Cost × 100

Markup is profit expressed as a percentage of cost. It tells you how much above cost you're pricing the product.

Example: Cost $10, Price $20 → Markup 100%

Key insight: Margin and markup describe the same profit in different ways. A 50% margin is always a 100% markup. Margin % is always lower than markup % for the same product. Retailers often quote margins; manufacturers often quote markups.
Margin % Markup % Price (on $10 cost)

Margin vs. Markup — A Mix-Up That Costs Real Money

Margin and markup sound interchangeable but are calculated from different bases, and confusing them leads to systematically mispriced products. Markup is profit as a percentage of cost (profit ÷ cost); margin is profit as a percentage of selling price (profit ÷ price). A 50% markup on a $10 product gives a $15 selling price — but that's only a 33% margin, not 50%. Price using the wrong one and you'll either leave money on the table or, worse, underprice without realizing it.

Three Ways to Use This Calculator

This tool covers the three directions sellers actually need: given cost and a target margin, find the selling price; given cost and selling price, find the resulting margin and markup; or given a selling price and target margin, work backward to find the maximum cost you can afford to pay. Switching between these modes means you don't need to do algebra by hand every time the question changes — just plug in the two numbers you know.

免费利润率计算器

本工具支持三种计算模式：已知成本求售价、已知成本和售价求利润率与加价率、已知售价和目标利润率反推最大可接受成本。清晰区分"利润率"（占售价比例）与"加价率"（占成本比例）两个常被混淆的概念，帮助卖家准确定价。

Frequently Asked Questions

What's the actual formula difference between margin and markup?▼
Markup = (Price − Cost) ÷ Cost. Margin = (Price − Cost) ÷ Price. Both describe the same dollar profit, but as a percentage of two different base numbers — which is why the same product can have, say, a 50% markup but only a 33% margin.
Which one should I use when setting prices?▼
Margin is generally the more useful number for business planning, since it directly tells you what percentage of each sales dollar is profit — which is what matters for comparing profitability across products with different price points. Markup is more common in retail pricing conventions (e.g. "we mark up 2x").
Can I work backward from a target margin to find my maximum cost?▼
Yes — the "price-to-cost" mode does exactly this: enter your selling price and target margin, and the calculator shows the maximum you can afford to pay for the product (or raw materials) while still hitting that margin.
Does this account for platform fees or shipping?▼
This calculator focuses on the core cost-price-margin relationship. For a full breakdown including platform fees, shipping, and advertising spend (e.g. for Amazon FBA sellers), use the dedicated FBA Profit Calculator or Break-even Calculator linked above for a more complete cost picture.