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Profit margin calculator

See how much of each sale you keep. Enter what an item costs you and what you sell it for.

Calculator

CostSelling price

What it does

This calculator needs two numbers: your cost and your selling price. It shows profit (price minus cost), margin (profit as a percentage of the selling price) and markup (profit as a percentage of cost). Results are rounded to two decimals and update as you type. Markup is only shown when the cost is above zero, and the price must be above zero to calculate a margin. Nothing is saved or uploaded; it is pure arithmetic in your browser.

Use it when you set prices for a new product, when a supplier raises costs, or before agreeing to a bulk discount. Margin tells you how much of every dollar of sales is left to pay rent, wages and yourself, which is why many retailers and service businesses track it product by product. Run your best sellers first: a small change in cost on a high-volume item moves total profit more than a big change on an item you rarely sell.

How to use it

Enter your cost per item, including materials and direct labor if you track them.
Enter the price you charge.
Read profit, margin and markup.
Change the price to see how the margin moves.

Worked example

A shop buys mugs for $18.00 and sells them for $30.00. Profit is $12.00, the margin is 40%, and the markup is 66.67%. Another product costs $40.00 and sells for $60.00: the profit is $20.00, which is a 50% markup but only a 33.33% margin. That is why a 50% markup never gives a 50% margin.