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Free Profit Margin Calculator

Calculate profit margins, markups, and revenue for your products. Factor in cost, selling price, and fees to understand your true profitability.

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Enter your cost and selling price to calculate profit margin, markup, and profit. Enter your cost and desired margin to find the required selling price. Enter your selling price and desired margin to find the maximum cost allowed.

The cost to produce or purchase the product.

The price at which you sell the product.

%

Target profit margin percentage (0-99.99%).

Formulas Used

1

Profit Margin

Margin % = ((Revenue - Cost) / Revenue) × 100

2

Markup

Markup % = ((Revenue - Cost) / Cost) × 100

3

Profit

Profit = Revenue - Cost

Results

This calculator provides estimates for educational purposes. Actual business profitability may vary depending on taxes, overhead costs, marketplace fees, and other expenses not included here.

How to Use This Tool

Calculate profit margin, markup, and profit instantly with three flexible calculation modes.

1

Pick a Calculation Mode

Choose from three modes: calculate margin from cost and revenue, find the required selling price from cost and desired margin, or determine the maximum cost from revenue and desired margin.

2

Enter Your Values

Enter the required fields for your chosen mode. Select your currency and optionally use quick margin presets for common target percentages like 20%, 30%, or 50%.

3

Review Your Results

Instantly see your profit, margin, and markup. View the visual gauge, donut chart, margin vs markup comparison, and the bulk margin table showing profit at different margin levels.

Frequently Asked Questions

Common questions about our Profit Margin Calculator.

Profit margin is the percentage of revenue that remains as profit after subtracting costs. It is calculated by dividing the profit (revenue minus cost) by the revenue, then multiplying by 100. For example, if you sell a product for $100 and it costs you $60, your profit is $40 and your profit margin is 40%. Profit margin is one of the most important metrics for evaluating business profitability and pricing strategy.
Margin and markup both measure profitability but use different bases for calculation. Profit margin is calculated as a percentage of the selling price (revenue), while markup is calculated as a percentage of the cost. For example, if a product costs $60 and sells for $100, the margin is 40% (40/100) but the markup is 66.67% (40/60). Markup is always higher than margin for the same transaction. Both metrics are useful but margin is more commonly used for financial reporting and pricing strategy.
To calculate profit margin, subtract the cost from the selling price to get the profit, then divide the profit by the selling price and multiply by 100. The formula is: Profit Margin = ((Selling Price - Cost) / Selling Price) x 100. For example, if your cost is $25 and selling price is $50, the margin is ((50 - 25) / 50) x 100 = 50%. You can use this calculator to instantly compute margin, markup, and profit for any cost and selling price combination.
A good profit margin for ecommerce typically ranges between 20% and 50%, depending on the industry and product type. Fashion and apparel often see margins of 40-60%, while electronics may have margins of 10-20%. Handmade and specialty products can achieve margins of 50% or higher. Factors that affect margin include competition, brand positioning, shipping costs, and marketplace fees. It is important to benchmark against your specific industry rather than rely on a universal standard.
Yes, this Profit Margin Calculator is completely free to use with no limits on the number of calculations. There is no registration or sign-up required. All calculations are performed instantly in your browser, and no data is sent to any server. You can use it as many times as you need to analyze your pricing, compare margins across products, or plan your business strategy.
Yes, this calculator automatically computes both profit margin and markup for every calculation. When you enter your cost and selling price, the results display the profit margin percentage alongside the markup percentage so you can see both metrics at once. Markup is calculated as ((Selling Price - Cost) / Cost) x 100. The tool also includes a visual comparison of margin vs markup to help you understand the relationship between the two.
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