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Profit Margin Calculator

Margin Calculator

Calculate profit margin, selling price, cost, profit, and markup in seconds. This free margin calculator helps you price products and services more accurately and understand the difference between margin and markup.

Enter margin details

Choose what you know and the calculator will estimate the rest.

Cost

Selling price

Calculation mode

Target value Used for target margin (%) or target profit ($) modes.

Units sold (optional) Use multiple units to estimate total revenue and total profit.

Tax rate on sale (optional %) Optional estimate for price including tax.

Profit Margin

Estimated margin based on your cost and selling price.

Profit Per Unit

Markup

Total Profit

Price with Tax

Margin breakdown

Cost per unit $0

Selling price per unit $0

Profit per unit $0

Units sold 0

Total revenue $0

Total profit $0

Selling price composition

Cost

Profit

How this margin calculator works

This margin calculator measures how much of your selling price is profit after subtracting cost. It can also estimate the selling price needed for a target margin or a target dollar profit.

Margin is one of the most important pricing metrics in business because it shows how efficiently revenue turns into profit. This tool also shows markup so you can compare the two metrics side by side.

What does margin mean?

Profit margin: Profit divided by selling price
Profit: Selling price minus cost
Markup: Profit divided by cost
Total profit: Profit per unit multiplied by units sold

Common uses

Set a selling price from a target margin
Check whether current pricing is profitable enough
Compare margin and markup
Estimate total profit across many sales

Margin formulas

The calculator uses these standard pricing formulas:

Profit = Selling Price − Cost Margin (%) = (Profit ÷ Selling Price) × 100 Markup (%) = (Profit ÷ Cost) × 100 Target Selling Price from Margin = Cost ÷ (1 − Margin) Target Selling Price from Profit = Cost + Target Profit Total Profit = Profit per Unit × Units Sold

Example

If your cost is $50 and your selling price is $80, your profit is $30. That produces a margin of 37.5% and a markup of 60%.

Margin Calculator FAQ

What is the difference between margin and markup?

Margin is based on selling price, while markup is based on cost. Margin tells you how much of the sale price is profit, while markup tells you how much profit you added on top of cost.

Can I use this calculator to set a target margin?

Yes. Choose the target margin mode, enter the percentage you want, and the calculator will estimate the selling price needed.

What is a good profit margin?

That depends on your industry, competition, and operating costs. Some businesses work on low margins and high volume, while others need much higher margins.

Can I estimate margin for many units sold?

Yes. Enter the number of units sold and the calculator will estimate total revenue and total profit.

Does tax increase margin?

No. Sales tax is usually added separately and is not normally treated as profit. This calculator shows it only as an optional added-on price estimate.