About Our Margin Calculator
Calculate profit margins instantly with our free online margin calculator. Whether you're pricing products, analyzing profitability, or comparing business metrics, our tool provides instant results showing margin, markup, and profit.
With our calculator, you can:
Calculate profit margin percentage from cost and selling price
Find the selling price needed for your desired margin
Convert between margin and markup percentages
Calculate gross profit in dollars
What is Profit Margin?
Profit margin is a financial metric that shows what percentage of revenue is actual profit after subtracting costs. It's one of the most important indicators of business health and pricing efficiency.
Profit Margin = (Profit ÷ Revenue) × 100
For example, if you sell a product for $100 and it costs you $70 to produce, your profit is $30 and your margin is 30%.
Margin vs Markup: What's the Difference?
Margin and markup are often confused, but they're calculated from different bases and serve different purposes:
Profit Margin
Margin = (Profit ÷ Selling Price) × 100
Expressed as percentage of the selling price. Used for financial analysis and comparing profitability.
Markup
Markup = (Profit ÷ Cost) × 100
Expressed as percentage of the cost price. Used for pricing products and setting retail prices.
Conversion Table
$100 cost → $115 price
$100 cost → $125 price
$100 cost → $133 price
$100 cost → $150 price
$100 cost → $200 price
$100 cost → $300 price
Key Insight
Margin is always less than markup for the same product because margin uses the larger selling price as the base, while markup uses the smaller cost. A 100% markup equals a 50% margin.
Margin Formulas
Margin % = ((Selling Price - Cost) ÷ Selling Price) × 100
Selling Price = Cost ÷ (1 - Margin % ÷ 100)
Margin % = (Markup % ÷ (100 + Markup %)) × 100
Markup % = (Margin % ÷ (100 - Margin %)) × 100