Profit Margin Calculator
This tool lets you calculate your profit margin and profit amount from cost price and selling price, instantly and accurately, whether it's for a product, an online store, or a business project. You can also find the right selling price or markup for a target margin. The tool is completely free and requires no sign-up or app download.
Percentage Calculators
Profit Margin Calculator
Find profit margin percentage from cost and selling price.
The interactive profit margin calculator tool appears here
How to Calculate Profit Margin
Enter the cost price, then enter the selling price, and click "Calculate" to see the profit margin percentage and profit amount instantly. The formula used is simple: Profit Margin = ((Selling Price - Cost Price) ÷ Selling Price) × 100.
For example, if an item costs you $30 to make and you sell it for $50, your profit is $20, and your profit margin is ((50 − 30) ÷ 50) × 100 = 40%. This means you keep 40% of each sale as profit after covering your costs.
Profit Margin vs. Markup: What's the Difference?
Profit margin and markup are related but different. Margin is your profit expressed as a percentage of the selling price, while markup is your profit expressed as a percentage of the cost price. Using the same $30 cost and $50 selling price example: the margin is 40%, but the markup is ((50 − 30) ÷ 30) × 100 = 66.7%.
Mixing up the two is a common pricing mistake — if you apply a 40% markup thinking it's the same as a 40% margin, your actual profit margin will end up lower than you intended.
When Do You Need a Profit Margin Calculator?
This calculator is useful for deciding on a fair selling price for a product, comparing profit margins across different products, evaluating the performance of a business or online store, pricing a new product correctly from the start, or making sure a selling price generates enough profit after covering costs.
It's commonly used by online sellers, retailers, freelancers, and small business owners to check whether their pricing is sustainable, and to quickly compare margins between suppliers or product lines.
What Is a Good Profit Margin?
A "good" profit margin depends heavily on the industry. Retail and e-commerce businesses often work with margins between 20% and 50%, while service-based businesses with lower overhead costs can often achieve much higher margins. Rather than comparing your margin to a single fixed number, it's usually more useful to compare it against others in your specific industry and against your own past performance over time.
Frequently Asked Questions
How do I calculate profit margin manually?
Subtract the cost price from the selling price, divide the result by the selling price, and multiply by 100. For example, a cost of 30 and a selling price of 50: ((50 - 30) ÷ 50) × 100 = 40%.
Does the calculator also show the profit amount?
Yes, along with the profit margin percentage, the calculator shows the profit amount as a number.
How do I calculate profit margin percentage?
Divide your profit (selling price minus cost price) by the selling price, then multiply by 100 to express it as a percentage.
What is a good profit margin?
It varies by industry — retail businesses often see margins of 20% to 50%, while service businesses can be higher. Compare your margin against others in your industry rather than a single fixed target.
What's the difference between margin and markup?
Margin is profit as a percentage of the selling price, while markup is profit as a percentage of the cost price. The two numbers are always different for the same sale.