Free Profit Margin Calculator
Margin, markup, and profit per unit from your cost and price - or flip it around and get the right selling price from a target margin. Works in any currency, updates live, and it's free with no sign-up.
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Margin vs markup - they are not the same number
Both start from the same profit; they just divide it differently. Margin divides by the selling price, markup divides by the cost. A trader who buys at 6,000 and sells at 9,000 has a 50% markup but only a 33.3% margin. Decide which one you mean before you set prices - "add 50%" and "keep 50%" are very different businesses.
| If your markup is | Your margin is |
|---|---|
| 25% | 20% |
| 33.3% | 25% |
| 50% | 33.3% |
| 66.7% | 40% |
| 100% | 50% |
| 150% | 60% |
| 300% | 75% |
Profit Margin FAQ
How do I calculate profit margin?
Margin = (selling price - cost) ÷ selling price × 100. A product that costs you 6,000 and sells for 9,000 makes 3,000 profit, and 3,000 ÷ 9,000 = 33.3% margin. Enter your cost and price above and the calculator does it live.
What's the difference between margin and markup?
They divide the same profit by different numbers. Margin divides by the selling price; markup divides by the cost. The same 6,000-cost, 9,000-price product has a 33.3% margin but a 50% markup. Mixing them up is the most common pricing mistake in retail - a shop that wants a 50% margin but applies a 50% markup is underpricing.
How do I set a price from a target margin?
Price = cost ÷ (1 - margin). For a 6,000 cost and a 40% target margin: 6,000 ÷ 0.60 = 10,000. Don't multiply cost by 1.40 - that's a markup, and it gives you 8,400, which is only a 28.6% margin. Use the 'Target margin' mode above.
Should the cost price include shipping and fees?
Yes - use your landed cost: purchase price plus shipping, import duty, payment processing, and packaging. A margin computed on the bare purchase price flatters you; the extra costs quietly eat the difference.
What is a good profit margin?
It depends on the industry and what the margin has to cover. High-volume retail can run healthy at 10-20% gross margins; services and digital products often run 50%+. What matters is that gross margin across all sales covers your operating expenses with profit left over - which is a Profit & Loss question, not a per-product one.
How is this different from a Growpins Ledger account?
This calculator prices one product at a time. A free Growpins Ledger account stores cost and selling price on every product, computes margin and markup automatically, and its best-sellers report shows the profit each product actually made from real invoices - not just the theoretical margin.
Want the margin on every product, automatically?
A free Growpins Ledger account stores cost and selling price on each product, computes margins for you, and shows the profit each product actually made from real sales in its best-sellers report - built by the team behind Growpins, founded by Dokun Bamigboye.
Track real margins - sign up freePricing with tax in the mix? Pair this with the Tax Calculator, or browse all free tools.