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Profit Margin Calculator

Know exactly what you make on every sale.

Margin = profit ÷ selling price × 100 · Markup = profit ÷ cost × 100

Price for a target margin = cost ÷ (1 − margin). A 50% margin means doubling the cost; a 50% markup does not.

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Profit Margin Calculator online

Margin and markup are easy to mix up, and the difference can quietly eat your profit. Enter what an item costs you and what you sell it for to see profit, margin and markup together — or enter a target margin or markup and get the price you need to charge.

How to use profit margin calculator

  1. Choose what to work out

    Margin from a price you already charge, or the price you need for a target margin or markup.

  2. Enter your cost

    What the item costs you, including anything you pay to get it ready to sell.

  3. Enter the price or the target

    Your selling price, or the margin or markup you are aiming for.

  4. Read the results

    Selling price, profit per item, margin and markup update as you type.

Frequently asked questions

What is the difference between margin and markup?

Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. Buying at ₦1,000 and selling at ₦1,500 is a 50% markup but a 33.3% margin.

How do I calculate the price for a target margin?

Divide the cost by one minus the margin. For a 40% margin on a ₦600 cost: 600 ÷ 0.6 = ₦1,000.

Can the margin be 100% or more?

No. A margin is a share of the selling price, so it is always below 100%. Markup has no upper limit.

Should cost include delivery and packaging?

Yes — include everything you pay to get the item to the customer, or the margin will look better than it is.

Add Profit Margin Calculator to your website

Free to embed on any site or blog. Your visitors use it right on your page, and their files never leave their device.

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