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Profit Margin Calculator
Find the selling price you need to reach a target profit margin from your cost of goods.
Profit Margin Calc
Calculate the ideal selling price based on your desired margin
$0
Ideal Selling Price
Gross Profit
$0
Markup Rate
0%
Cost Basis
$0
Price Composition
Profit margin is profit expressed as a percentage of the selling price, and it is the number healthy businesses are managed by. This calculator converts revenue and costs into a margin, and shows the markup that produces the same result.
How to use this calculator
- Enter the selling price (revenue) and the cost.
- Press calculate to see the profit, the margin percentage and the equivalent markup.
Margin is not markup
A product costing 80 and selling at 100 has a 20% margin but a 25% markup. Confusing the two is one of the commonest pricing errors: aiming for a 30% "markup" while the business plan needs a 30% margin leaves every sale short. This calculator keeps the two side by side so they can never be mixed up again.
Frequently asked questions
What is the profit margin formula?
Margin = (price − cost) divided by price, times 100. Use total costs for net margin, direct costs only for gross margin.
What margin should my business aim for?
It depends on the industry. Many service businesses target 20% or more net; retail often runs much thinner. Compare with your sector, then with your own past years.
Can margin exceed 100%?
No. Margin is a share of the price, so 100% would mean zero cost. Markup, measured on cost, can exceed 100%.