Work out profit margin from cost and selling price, or find the price that gives you the margin you want.
This calculator needs JavaScript to run. The sum is simple: profit margin = (selling price − cost) ÷ selling price × 100. For example, a $100 price with a $60 cost gives $40 profit, which is a 40% margin.
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Rounded to the nearest cent. This works out margin on one price. It is not accounting or financial advice.
To calculate profit margin, subtract the cost from the selling price, divide the result by the selling price and multiply by 100. A price of $100 with a cost of $60 gives $40 profit, and $40 ÷ $100 × 100 is a 40% margin.
Margin is always measured against the selling price, so it can never reach 100%. The same sum also gives you markup: $40 ÷ $60 × 100 is 66.67%. In the calculator above, choose Find margin and enter the cost and the selling price.
To find the price for a margin you want, divide the cost by 1 minus the margin as a decimal. For a $60 cost and a 40% margin, $60 ÷ 0.6 is $100.
Do not multiply the cost by 1.4 for a 40% margin: that gives $84, which is only a 28.57% margin. In the calculator above, choose Find price and enter the cost and the margin you want. Check how many sales cover your fixed costs with the break-even calculator.
Margin is profit as a share of the selling price. Markup is profit as a share of the cost. The same price can be described both ways, and markup is always the bigger number. To work from the cost instead, use the markup calculator. This table shows the margin you get from common markups.
| Markup | Equals a margin of |
|---|---|
| 10% | 9.09% |
| 20% | 16.67% |
| 25% | 20% |
| 30% | 23.08% |
| 50% | 33.33% |
| 75% | 42.86% |
| 100% | 50% |
For a cost of $100, this is the selling price and profit at each margin. A 30% margin needs a price of $142.86, not $130.
| Margin | Selling price | Profit |
|---|---|---|
| 10% | $111.11 | $11.11 |
| 20% | $125.00 | $25.00 |
| 25% | $133.33 | $33.33 |
| 30% | $142.86 | $42.86 |
| 40% | $166.67 | $66.67 |
| 50% | $200.00 | $100.00 |
| 60% | $250.00 | $150.00 |
Profit margin is the share of the selling price that you keep as profit, shown as a percentage. If you sell something for $100 and it costs you $60, the profit is $40 and the profit margin is 40%.
To calculate profit margin, subtract the cost from the selling price, divide the result by the selling price and multiply by 100. For a price of $100 and a cost of $60, that is ($100 − $60) ÷ $100 × 100 = 40%.
Margin is profit as a share of the selling price, while markup is profit as a share of the cost. The same $40 profit on a $60 cost is a 40% margin but a 66.67% markup, and a 50% markup is a 33.33% margin.
To find the profit at a 40% margin, multiply the selling price by 0.4. On a $100 price the profit is $40 and the cost is $60. To go the other way, divide your cost by 0.6 to get the price: a $60 cost needs a $100 price.
A 30% margin on a $100 selling price means $30 profit and a $70 cost. If $100 is your cost and you want a 30% margin, divide it by 0.7 and sell at $142.86.
Gross margin only subtracts the direct cost of what you sell, while net margin subtracts all of your costs. This calculator uses the cost you enter, so enter the direct cost for gross margin or all of your costs for net margin.
You’ve got the price. Now get paid for it.
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