Profit Margin Calculator
Enter your cost and selling price to see your margin, markup and profit. Or enter a margin you want and we find the price.
This calculator gives estimates for information only. It is not financial, tax or legal advice. Real results depend on lender terms, fees and local rules.
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The formula
Margin % = (price - cost) / price x 100. Price for a target margin = cost / (1 - margin).
What margin is
Gross margin is the share of the selling price you keep as profit. Something that costs 60 and sells for 100 has a profit of 40 and a margin of 40 percent.
Margin versus markup
They are often mixed up. Markup compares profit with cost: 40 / 60 is 66.7 percent. Margin compares profit with price: 40 / 100 is 40 percent. A 50 percent margin means a 100 percent markup, so doubling your cost.
Setting a price for a target margin
To get a 30 percent margin on a 70 cost, divide by 0.70: the price is 100. A common mistake is adding 30 percent to the cost, which gives 91 and only a 23 percent margin.
Examples to check
Type these into the calculator above to see how it behaves. Every result below was produced by the same calculator code that runs on this page.
| What you enter | What you get |
|---|---|
| Cost and selling price; Cost ($): 60; Selling price ($): 100 | Gross margin: 40%; Markup: 66.67% |
| Cost and wanted margin %; Cost ($): 70; Wanted margin (%): 30 | Selling price: $100.00; Gross margin: 30% |
| Cost and wanted markup %; Cost ($): 40; Wanted markup (%): 50 | Selling price: $60.00; Gross margin: 33.33% |
Profit Margin Calculator: frequently asked questions
Which is bigger, margin or markup?
For the same sale, markup is always bigger than margin because markup divides profit by cost (smaller) while margin divides it by price (bigger).
Is this financial advice?
No. It gives an estimate from the numbers you enter. Real offers depend on fees, tax and the lender or provider, so check the terms before you commit.
Is what I enter in this calculator saved or sent anywhere?
No. The calculation runs in your browser, so what you enter is not sent to our servers. We only count, anonymously, whether a tool ran successfully.
Is this calculator free to use?
Yes. It is free, needs no sign-up and has no usage limit.
Last reviewed: October 3, 2026