Profit Margin Calculator

Calculate margin from revenue — or find the price from markup.

$
What you pay for the product
$
What the customer pays

How to Use This Calculator

Margin tab

Enter your cost and revenue (selling price). The calculator instantly shows your profit, profit margin percentage, and markup percentage. This is the tab to use when you already know your selling price and want to understand your profitability.

Markup tab

Enter your cost and desired markup percentage. The calculator shows the selling price you need to charge. Use this when you know your cost and want to set a price based on a target markup.

These two tabs solve the most common confusion in business pricing — the difference between margin and markup. Use both to double-check your numbers.

Share your result

Every input is encoded in the URL. Click Share, send the link — they'll see your exact numbers. No re-entering, no screenshots.

The Formula

Profit margin (as a percentage of revenue):

Margin = (Revenue − Cost) ÷ Revenue × 100

Markup (as a percentage of cost):

Markup = (Price − Cost) ÷ Cost × 100

Converting between them:

Margin = Markup ÷ (1 + Markup ÷ 100) × 100

Where:

The critical difference: margin uses revenue as the denominator, markup uses cost. For the same product, markup is always higher than margin.

Example

Pricing a product for an online store

You source a product for $45 and sell it for $79. Let's see the margin and markup.

Cost$45.00
Selling price$79.00
Profit$34.00
Margin43.0%
Markup75.6%

Now the reverse: on the Markup tab, enter $45 cost with 75.6% markup — and you get $79.00 selling price. Both tabs confirm the same numbers from different angles.

FAQ

Margin is profit as a percentage of the selling price (revenue). Markup is profit as a percentage of the cost. They describe the same dollar profit but with different denominators. For example, a 50% markup equals a 33.3% margin — same $10 profit on a $20 cost / $30 price, just measured differently.
It varies significantly by industry. Grocery stores operate on 1–3% margins. Retail averages 5–10%. Restaurants typically see 3–9%. Software companies can achieve 60–80%. The right margin depends on your industry, volume, and overhead costs. Compare against industry benchmarks, not an absolute number.
Use the formula: Margin = Markup ÷ (1 + Markup/100) × 100. For example, a 100% markup: Margin = 100 ÷ (1 + 1) × 100 = 50%. A 50% markup: Margin = 50 ÷ (1 + 0.5) × 100 = 33.3%. Or just enter the numbers in this calculator — both tabs show you both values.
Margin is always lower than markup for the same product. If you're used to thinking in markup terms, the margin number will feel surprisingly small. A 100% markup (doubling your cost) is only a 50% margin. A 50% markup is only a 33.3% margin. This is normal — they're just different ways of measuring the same profit.
No — profit margin caps at 100% (which would mean zero cost, all profit). In practice, margins above 90% are extremely rare. Markup, on the other hand, can be any number — a 500% markup means you charge 6 times your cost, but that's still only an 83.3% margin.

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<iframe src="https://sum.money/embed/margin-calculator" width="100%" height="600"></iframe>