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Profit Margin Calculator

What is Profit Margin Calculator?

A profit margin calculator shows gross profit, profit margin and markup from your cost and selling price. It can also tell you what price you need to reach a target margin.

How Profit Margin Calculator helps

  • Prevents underpricing
  • Explains margin versus markup
  • Calculates a price for a target margin

How to use Profit Margin Calculator

  1. Enter your numbers in the fields (sample values are pre-filled).
  2. Read the results, which update instantly.
  3. Change one input at a time to compare scenarios.

Example

Cost of 60 and a price of 100 gives a 40 percent margin and a 66.7 percent markup.

Frequently asked questions

What is the difference between margin and markup?

Margin is profit divided by price. Markup is profit divided by cost.

Does it include overheads?

No. Only the cost you enter is used.

How is target price calculated?

Price = cost / (1 - target margin).

Results are estimates for general information only and are not financial, tax or investment advice. Check numbers with a qualified professional.

Last updated October 7, 2026.

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