By ToolzHive
About this tool
The profit margin calculator shows how much you make on a sale. Enter what an item costs you and the price you sell it for, and it calculates the profit, the profit margin (profit as a share of the price) and the markup (profit as a share of the cost). Add a quantity to see the total revenue, cost and profit of an order.
How to use Profit Margin Calculator
- Enter the cost per item and the selling price per item.
- Enter how many items you sell.
- Read the profit, margin and markup, and compare them with your targets.
Worked example
Buying a product for $60 and selling it for $100 earns $40 profit. That is a 40% margin and a 66.7% markup.
What is the difference between margin and markup?
Margin is profit divided by the selling price; markup is profit divided by the cost. The same sale has a higher markup than margin: a 50% markup equals a 33.3% margin.
What is a good profit margin?
It varies by industry. Grocery retailers often work on low single-digit net margins, while software and services can have much higher margins.
Is this gross or net profit?
Gross profit: price minus the cost of the goods. Net profit also subtracts overheads like rent, salaries, marketing and taxes.
Put this guide into practice
- Profit Margin Calculator — Calculate profit, profit margin and markup from cost and selling price.