Margin and markup are not the same thing. Enter your cost and price below for both — or work backwards from a target margin to the price you should charge.

Profit Margin Calculator – Margin, Markup & Pricing Tool (Free)

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Profit Margin Calculator

Margin, markup & profit in one place. Find your margin, price for a target margin, or back out your maximum cost — in seconds.

Cost per unit (USD $)

Selling price per unit (USD $)

Your numbers

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Profit per unit

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Profit margin

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Markup

margin = (price − cost) ÷ price × 100 · markup = (price − cost) ÷ cost × 100

Margin is your profit as a share of the selling price; markup is profit as a share of cost. A 50% margin equals a 100% markup — they are never the same number (except at 0%).

Cost per unit (USD $)

Target profit margin (%)

Price to hit your target

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Selling price

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Profit per unit

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Equivalent markup

price = cost ÷ (1 − margin ÷ 100)

This is reverse pricing: instead of guessing a price, you start from the margin you want and let the math set the price.

Selling price per unit (USD $)

Target profit margin (%)

Your cost ceiling

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Maximum cost

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Profit per unit

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Margin check

max cost = price × (1 − margin ÷ 100)

Keep your all-in cost (product, shipping, fees) at or below this number and your target margin is protected.

100% private

Every calculation runs in your browser. Your numbers are never sent anywhere.

No signup

Use it instantly — no account, no email, no paywall in front of the math.

Free forever

Unlimited calculations for your store, freelance quotes, or reselling side hustle.

How to use the profit margin calculator

1
Pick your mode
Choose “Margin & Markup” to analyze a price, “Find Selling Price” to price from a target margin, or “Find Max Cost” to work backward from a fixed price.
2
Enter your numbers in USD
Type your cost and price (or your target margin percentage). Decimals are fine — $49.99 works exactly.
3
Hit calculate
Get profit per unit, margin %, markup %, and the exact formula used — so you can sanity-check every figure.

Why sellers use this calculator

Margin and markup, side by side

Most free calculators show one number. You get both, plus profit per unit, so you never mix the two up again.

Reverse pricing mode

Start from the margin you want — say 60% — and the calculator tells you exactly what price to charge. No guesswork.

Cost-ceiling mode

Selling at a fixed market price? Find the maximum you can afford to spend per unit while protecting your margin.

Formulas shown, always

Every result panel shows the exact formula behind it, so accountants and partners can verify the math.

Handles edge cases gracefully

Zero cost, zero price, and margins near 100% get clear explanations instead of “Infinity” or broken output.

Made for US sellers

USD formatting, US decimal conventions, and examples that match how American e-commerce and retail actually price.

Profit margin FAQs

What is the difference between profit margin and markup?

Profit margin is profit divided by the selling price; markup is profit divided by the cost. If something costs $50 and sells for $100, the margin is 50% but the markup is 100%. Margin can never exceed 100%; markup can.

How do I calculate profit margin from cost and selling price?

Subtract cost from price to get profit, divide by the price, and multiply by 100. Example: ($100 − $50) ÷ $100 × 100 = 50% margin.

How do I set a price to hit a target margin?

Use the “Find Selling Price” mode: price = cost ÷ (1 − margin ÷ 100). For a $40 cost and 60% target margin: $40 ÷ (1 − 0.60) = $100.

What is a good profit margin for a small business?

It varies by industry. US retail often runs 20–40% gross margin, e-commerce 30–60%, and digital products or services 70%+. Compare against your own industry average rather than a universal number.

Can profit margin be more than 100%?

No. Margin is profit as a share of price, so it tops out just under 100%. If a calculator shows over 100% margin, it is actually showing markup — this page keeps the two separate.

What happens if my cost is $0?

Your margin is 100% (all revenue is profit) and markup is mathematically infinite — the calculator shows it as “∞” with an explanation instead of an error.

Is my data saved or sent anywhere?

No. All calculations happen locally in your browser. Nothing is uploaded, stored, or tracked.