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Profit Margin & Markup Calculator

Price your products and services profitably. Calculate gross profit, optimal selling price, profit margin, and markup percentage in real time.

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Pricing Parameters

$

What you paid for raw materials, manufacturing, or wholesale

%

Example: A 40% margin means 40% of the sale price is gross profit.

Popular Margin Presets:
Selling Price (Revenue)
$83.33

Charge your customer this amount

Gross Profit
$33.33

Net profit after unit costs

Gross Margin
40.00%

Profit as % of sale price

Markup Percentage
66.67%

Profit as % of cost

Revenue Composition 60% Cost / 40% Profit
Cost of Goods: $50.00 Gross Profit: $33.33

Multi-Tier Margin Comparison Table

Compare how different margin targets impact your retail selling price based on your current $50.00 unit cost.

Margin Target Equivalent Markup Recommended Selling Price Your Profit Per Unit
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Margin vs. Markup: The Crucial Business Difference

A common pitfall for new business owners is confusing Profit Margin with Markup. While both measure the profitability of a product, they are calculated relative to different numbers:

Profit Margin (%)

The percentage of the final selling price that you keep as profit.

Margin = (Profit ÷ Selling Price) × 100

Markup Percentage (%)

The percentage added onto the original cost to arrive at the sale price.

Markup = (Profit ÷ Cost) × 100

Example: Why 50% Markup is NOT 50% Margin

If an item costs you $100 to make and you add a 50% markup ($50), you sell it for $150. Your profit is $50. However, $50 profit on a $150 sale is a 33.3% profit margin, not 50%! To achieve a true 50% profit margin, you must price the item at $200.