Profit Margin Calculator
Find profit margin and markup from cost and price, or work backwards to a selling price or max cost from a target margin.
Profit per unit
$32.50
With a 65.00% markup, your sell price is $82.50 and you earn $32.50 per sale, a 39.39% profit margin.
Key metrics
| Selling price | $82.50 |
|---|---|
| Cost | $50.00 |
| Profit | $32.50 |
| Margin | 39.39% |
| Markup | 65.00% |
Price breakdown
- Product cost60.61%
- Profit margin39.39%
Share of selling price
Margin vs markup
Same profit, two different percentages.
Markup is usually higher than margin for the same deal. Quote the figure your buyer or cost sheet expects.
Profit at scale
Projected profit if you sell more units at the same price and cost.
| Units | Revenue | Total cost | Total profit |
|---|---|---|---|
| 1 | $82.50 | $50.00 | $32.50 |
| 10 | $825.00 | $500.00 | $325.00 |
| 100 | $8,250.00 | $5,000.00 | $3,250.00 |
| 1000 | $82,500.00 | $50,000.00 | $32,500.00 |
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How to use this tool
- Choose a mode: find margin from cost and price, find price from cost and a target margin, or find max cost from price and a target margin.
- Enter your numbers. Results update as you type, including profit per unit, margin, and markup.
- Use the price breakdown and profit-at-scale chart to see how much of each sale is cost versus profit, and how profit grows with volume.
- Remember: margin is profit divided by price. Markup is profit divided by cost. They are related but not interchangeable.
Frequently asked questions
What is profit margin?
Profit margin is the share of each sale you keep after covering the cost of that item. The formula is (selling price − cost) ÷ selling price. If something costs 50 and sells for 80, profit is 30 and margin is 37.5%. Margin answers a practical question: of the money a customer pays, how much is actually yours before other business expenses?
What is the difference between margin and markup?
Markup is how much you add on top of cost to set a price: (selling price − cost) ÷ cost. Margin is how much of the selling price is profit: (selling price − cost) ÷ selling price. The same product can show both figures, and they are never identical except in special cases. Example: cost 75, price 100 → profit 25, margin 25%, markup about 33.3%. Quoting a 25% markup when you meant a 25% margin will underprice the product.
How does this calculator help?
It lets you check three common pricing jobs in one place: see the margin and markup on a known cost and price, reverse-engineer a selling price from a target margin, or find the highest cost you can afford at a given price and margin. Live charts show how each sale splits between cost and profit, and how total profit scales at 1, 10, 100, and 1,000 units, so you can sanity-check quotes, shelf prices, and wholesale deals before you commit.
What is a good profit margin?
It depends on your industry, volume, and overhead. Many retail and product businesses aim for product-level margins around 40% to 50% or higher before rent, ads, and wages. Service businesses often need different targets because labor is the main cost. Use this tool to test scenarios: raise price, lower cost, or change target margin and compare the profit-per-unit and scale charts. A “good” margin is one that still covers your real business costs and leaves room to grow.
What costs should I include?
Include every cost tied to delivering one unit or one job: materials, manufacturing or wholesale cost, packaging, and any per-item fees you always pay. For a clearer picture later, you can also fold in an average shipping or fulfillment amount if it is predictable. Do not mix in one-off setup fees or whole-company overhead into this simple unit calculator unless you have already allocated them per unit. Keep cost and price on the same tax basis.
Does this include tax, shipping, or discounts?
No. The calculator does not add sales tax, VAT, GST, shipping, payment fees, or discounts for you. Enter cost and price on the same basis (both before tax or both after tax), and if a discount changes the selling price, enter the discounted price so margin reflects what you actually collect.
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