Free tool
Profit margin and markup calculator
Enter what an item costs you and what you sell it for. See your profit, your margin and your markup, or work backward from the margin you want.
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How it works
How it works
Profit is price minus cost. Margin divides that profit by the price, and markup divides it by the cost. To work backward, a target margin gives price = cost divided by (1 minus margin), and a target markup gives price = cost times (1 plus markup).
FAQ
About this calculator
What is the difference between margin and markup?
Margin is profit divided by the selling price. Markup is profit divided by what the item cost you. An item that costs $60 and sells for $100 has a 40% margin and a 66.7% markup.
How do I price for a target margin?
Divide your cost by one minus the margin. For a 40% margin on a $60 cost, $60 divided by 0.60 is $100. The calculator does this for you.
Is gross margin the same as net profit?
No. Gross margin only subtracts what the item cost. Rent, wages, software, fees and taxes come out after that, so your net profit is lower.
What is a good margin?
It depends on the business. Restaurants, retail, services and software all run very different margins. Compare to businesses like yours, and make sure your margin covers your other costs.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
Selling at markets or online? The Sales-Channel Profit Tracker shows which channel makes money. Try the craft fair profit calculator too. Read gross margin vs markup for the difference. More free tools: Books Audit Python script, Financial Statements Builder Python script, Automated Checkbook Register Python script, or see all free tools.
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General information, not tax or legal advice. How we write and check our tools.
Excel workbook
Break-Even and Pricing Workbook
Enter your fixed costs and what each product or service costs and sells for, then see the sales you need and the price that reaches your target margin.
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