Profit Margin Calculator
Cost and price in, profit, margin, and markup out — know what you actually keep on every sale.
Revenue alone tells you nothing about whether a sale was worth making. This profit margin calculator starts from the two numbers that matter: what something cost you and what you sold it for. It shows the profit in money terms, the profit margin as a share of the selling price, and the markup as a share of cost, so you can compare products, services, and quotes on the same basis. Margin and markup answer different questions, which is why people mix them up. Margin tells you how much of each dollar of revenue you keep after cost, and it is the number to watch when you judge whether a business is healthy. Markup tells you how much you added on top of cost, and it is the number to use when you set a price from a known cost. A forty percent margin is not the same as a forty percent markup, and quoting one when you meant the other quietly gives away profit. Use this calculator before you set a price, accept a discount, or compare two offers that look similar on revenue alone. All calculations run in your browser and nothing is stored.
Your numbers
Your margin
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How to use the result
- Use margin to judge whether a product, service, or client is worth keeping — it shows what you keep from each dollar of revenue.
- Use markup to set a price from a known cost — it shows how much you added on top of cost.
- If the margin is negative, you are selling below cost. Raise the price, cut the cost, or stop selling that item.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit divided by selling price; markup is profit divided by cost. A $400 profit on a $1,000 price with a $600 cost is a 40% margin but a 66.7% markup.
What is a good profit margin?
It depends on the industry, overheads, and volume. Compare against similar businesses, and make sure the margin covers all costs beyond the direct cost entered here, such as admin, marketing, and taxes.
Can margin be over 100%?
No. Margin is profit as a share of price, so it cannot exceed 100% unless cost is negative. Markup, by contrast, can exceed 100%.