Profit Margin Calculator
Calculate gross profit, profit margin and markup from your cost and selling price, or work backwards from a target margin to find the price you should charge.
About Profit Margin Calculator
The profit margin calculator works in two directions. Give it your cost and selling price and it returns the gross profit, profit margin and markup. Or give it your cost and a target margin, and it works backwards to the selling price you should charge.
The definitions matter: margin = (price − cost) ÷ price, measured against revenue, while markup = (price − cost) ÷ cost, measured against what you paid. In target-margin mode the price is derived with cost ÷ (1 − margin), the standard reverse-margin formula.
It is a quick pricing check for retailers, freelancers and e-commerce sellers — useful whenever you need to price a product for a desired margin or audit how profitable an existing price really is.
How to use Profit Margin Calculator
- Choose a mode: “Cost and price” to find margin and markup, or “Cost and target margin” to find the selling price.
- Enter your cost — what the product or service costs you.
- Enter the selling price, or the desired margin percentage, depending on the mode.
- Read the profit margin, gross profit and markup, or the computed selling price.