Profit Margin Calculator
Calculate your profit margin and markup percentage.
Profit
Margin
Markup
Free to useNo software to install — works in any modern browser.
No signup neededOpen the tool and start straight away.
Runs in your browserNothing you enter is sent to a server.
Works on mobileSame tool on your phone, tablet or desktop.
How it works
- Enter — type or paste your values or text.
- Get the result — it is worked out in your browser.
- Adjust — change the inputs to compare, or copy the result.
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About Profit Margin Calculator
Work out profit, margin and markup from a cost and a selling price — essential for pricing products and checking that a sale still makes money. It runs in your browser.
Margin vs markup
These two are often confused. If something costs 800 and sells for 1,000, the profit is 200. The margin is profit as a share of the selling price: 200 ÷ 1,000 = 20%. The markup is profit as a share of the cost: 200 ÷ 800 = 25%. Same sale, two different percentages — make sure you and your supplier or accountant mean the same one.
Pricing for a target margin
To reach the margin you want, divide the cost by (1 − margin). For a 30% margin on a cost of 800: 800 ÷ 0.7 ≈ 1,143. Simply adding 30% to the cost gives 1,040, which is only about a 23% margin — a common reason small shops earn less than they think.
What to include in cost
Include everything it takes to sell one item: purchase price, packaging, delivery, payment or marketplace fees, and a share of advertising. Leaving out a 10% platform fee can turn a healthy margin into a loss.
Discounts eat margin fast
On a 20% margin, a 10% discount halves your profit. Check the effect before running a sale — the Discount Calculator gives the new price to test here.
Gross vs net
This gives the gross margin on a product. Net margin also subtracts rent, salaries and other running costs, so it is always lower.
For selling prices that include tax, remove the tax with the GST / VAT Calculator first, so you compare margins on the price before tax.
Margin vs markup
These two are often confused. If something costs 800 and sells for 1,000, the profit is 200. The margin is profit as a share of the selling price: 200 ÷ 1,000 = 20%. The markup is profit as a share of the cost: 200 ÷ 800 = 25%. Same sale, two different percentages — make sure you and your supplier or accountant mean the same one.
Pricing for a target margin
To reach the margin you want, divide the cost by (1 − margin). For a 30% margin on a cost of 800: 800 ÷ 0.7 ≈ 1,143. Simply adding 30% to the cost gives 1,040, which is only about a 23% margin — a common reason small shops earn less than they think.
What to include in cost
Include everything it takes to sell one item: purchase price, packaging, delivery, payment or marketplace fees, and a share of advertising. Leaving out a 10% platform fee can turn a healthy margin into a loss.
Discounts eat margin fast
On a 20% margin, a 10% discount halves your profit. Check the effect before running a sale — the Discount Calculator gives the new price to test here.
Gross vs net
This gives the gross margin on a product. Net margin also subtracts rent, salaries and other running costs, so it is always lower.
For selling prices that include tax, remove the tax with the GST / VAT Calculator first, so you compare margins on the price before tax.
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