Profit Margin Calculator

Choose what you already know — cost and price, cost and a target margin, price and a margin, or cost and a markup — and the calculator fills in the rest. It shows the gross margin, markup and profit per unit together, so you never confuse the two percentages when setting prices.

How to use the Profit Margin Calculator

1. Pick what you know: cost + price, cost + margin %, price + margin % or cost + markup %.
2. Enter the two values.
3. Select your currency.
4. Press Calculate to see margin, markup, profit, cost and price.

Features

• Four calculation modes
• Margin and markup shown side by side
• Finds the price needed for a target margin
• Warns when the price is below cost

Benefits

• Set prices that actually hit your margin target
• Talk to suppliers and retailers using the right percentage
• Fast enough to use while quoting a customer

Frequently asked questions

What price gives a 40% margin on a cost of 60?

Price = cost ÷ (1 − margin). 60 ÷ 0.6 = 100, so selling at 100 gives a 40 profit, which is 40% of the price.

Why can a margin never reach 100%?

Margin is profit divided by price. Reaching 100% would mean the cost is zero, so with any real cost the margin must stay below 100%. Markup has no such limit.

Is this gross or net margin?

Gross margin per unit, based only on the cost you enter. Overheads such as rent and salaries are not included, so your net margin will be lower.

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