How to calculate profit margin
- Type your cost price.
- Type the selling price, or the margin you want.
- Read the profit, the margin and the markup.
About this tool
Profit margin is your profit as a share of the selling price. Enter your cost and your selling price to see the profit, the margin and the markup together. Or enter a margin you want and get the price to charge. People often mix up margin and markup, so both are shown side by side with the formula for each.
Common questions
What is the profit margin formula?
Margin = (selling price - cost) / selling price x 100. Buying at 80 and selling at 100 gives a 20% margin.
What is the difference between margin and markup?
Margin divides profit by the selling price. Markup divides profit by the cost. The same sale is a 20% margin and a 25% markup.
How do I price an item for a 30% margin?
Divide the cost by 0.7. A cost of 70 needs a selling price of 100. Choose 'Cost and the margin I want'.
Is it free to use?
Yes. There's no sign-up, and you can use it as often as you like.
Is my text uploaded anywhere?
No. This tool runs inside your browser, so what you enter stays on your device.
Do I need to install anything?
No. It works in your browser on a computer or a phone.