Margin Calculator

Calculate profit margins, markups, and profit amounts instantly with our professional margin calculator. Ideal for business owners, retailers, and anyone managing pricing or profitability.

Results

Profit Margin: --%
Markup Percentage: --%
Profit Amount: $--
Revenue: $--

Quick Tip

Profit margin shows percentage of revenue that is profit, while markup shows percentage added to cost price.

How It Works

Our product margin calculator helps you find profit margins and markups in just three steps.

1

Enter Your Values

Input cost and selling price, or add a desired margin to calculate the target selling price.

2

Automatic Calculation

The calculator instantly computes profit margin, markup percentage, total revenue, and profit amount using standard business formulas.

3

Review and Adjust

Compare results to industry averages and refine pricing to meet your target profitability goals.

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Explore our comprehensive suite of date and time calculation tools designed to make your life easier.

Understanding Margin Calculations

Master the concepts of profit margins, markup, and pricing strategies for business success.

Key Concepts

Profit Margin

Shows the percentage of revenue retained as profit after costs are subtracted. Higher margins indicate stronger financial health.

Markup Percentage

Represents how much you increase cost to set the selling price—critical for determining competitive pricing.

Gross vs Net Margin

Gross margin considers production costs, while net margin includes operating expenses, taxes, and interest.

Industry Standards

Retail 20–50%
Restaurants 60–70%
Software 80–95%
Manufacturing 10–30%
Consulting 70–90%

Best Practices

Monitor margins monthly to identify pricing trends.

Set clear target margins for each product category.

Benchmark against competitor pricing to stay competitive.

Always include hidden costs like shipping, packaging, and storage in your calculations.

Common Use Cases

  • Product pricing and profitability analysis
  • Evaluating business performance
  • Investment and revenue forecasting
  • Competitive market analysis
  • Financial planning and budgeting

Calculation Formulas

Profit Margin Formula

Profit Margin = (Selling Price - Cost Price) ÷ Selling Price × 100
Example: ($150 - $100) ÷ $150 × 100 = 33.33%

Markup Formula

Markup = (Selling Price - Cost Price) ÷ Cost Price × 100
Example: ($150 - $100) ÷ $100 × 100 = 50%

Profit Amount Formula

Profit = Selling Price - Cost Price
Example: $150 - $100 = $50

Required Selling Price Formula

Selling Price = Cost Price ÷ (1 - Margin% ÷ 100)
Example: $100 ÷ (1 - 33.33 ÷ 100) = $150

Frequently Asked Questions

Get answers to common questions about margin calculations and business profitability.

Use the formula: Profit Margin = (Selling Price - Cost Price) ÷ Selling Price × 100. Enter your cost and selling price into the margin calculator to see your profit margin instantly.

Margin shows how much of your selling price is profit, while markup shows how much you add to your cost price to reach that selling price. For example, a 33% margin equals a 50% markup.

Yes. The calculator computes gross profit margin by default. For net margin, include all expenses—like taxes, labor, and overhead—in your cost input.

It varies by industry. Retail margins average 20–50%, manufacturing 10–30%, and software or consulting services often exceed 70%.

Use this formula: Selling Price = Cost Price ÷ (1 - Margin% ÷ 100). Enter your desired margin to instantly find the selling price needed to achieve it.

Yes. You’ll see both margin and markup values side-by-side, along with total profit and revenue results.

Absolutely. It works for physical goods, digital products, consulting services, or any business that involves pricing and cost analysis.

Markup = (Selling Price - Cost Price) ÷ Cost Price × 100. It shows how much more you sell an item for compared to its cost.

Yes. If you know your cost and desired margin, the calculator can determine the required selling price and profit percentage automatically.

No. All calculations happen locally in your browser. Your data is private, secure, and never stored or shared.