Profit Margin & Markup Calculator
Price your products and services profitably. Calculate gross profit, optimal selling price, profit margin, and markup percentage in real time.
Pricing Parameters
What you paid for raw materials, manufacturing, or wholesale
Example: A 40% margin means 40% of the sale price is gross profit.
Charge your customer this amount
Net profit after unit costs
Profit as % of sale price
Profit as % of cost
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 |
|---|
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.
Markup Percentage (%)
The percentage added onto the original cost to arrive at the sale price.
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.