Free Profit Margin Calculator
Find your profit margin, markup, and the exact selling price you need — instantly. Enter any two of cost, revenue, or target margin and the rest is calculated as you type. Includes a bulk table for pricing your whole product list. Free forever, no signup.
Enter values to see your results.
Profit Margin Formulas
- Profit Margin = ((Revenue − Cost) / Revenue) × 100
- Markup = ((Revenue − Cost) / Cost) × 100
- Profit = Revenue − Cost
Bulk Product Margin Calculator
| Product / Service | Cost | Revenue | Profit Margin | Markup | Profit | |
|---|---|---|---|---|---|---|
| — | — | — | ||||
| — | — | — | ||||
| — | — | — | ||||
| Total | $0.00 | $0.00 | — | $0.00 |
Margin vs. Markup — what's the difference?
They sound alike and get mixed up constantly, but they measure different things. Profit margin is your profit as a percentage of the selling price (revenue). Markup is your profit as a percentage of the cost. Same profit, two different denominators — so the percentages are never equal.
Quick example: a product costs you $60 and you sell it for $100. Your profit is $40. The margin is $40 ÷ $100 = 40%. The markup is $40 ÷ $60 = 66.7%. Notice the markup is always the bigger number, because cost is smaller than revenue.
Why it matters: if a supplier says "add a 50% markup" and you instead apply a 50% margin, you'll price the item very differently — and likely leave money on the table or price yourself out of the market. When in doubt, decide in margin (it tells you what share of each sale you actually keep) and use this calculator to convert to the selling price.
Why use this generator
- Small-business owner pricing a new product and wanting to keep a healthy margin.
- Freelancer or agency setting a rate that covers costs and a target profit.
- Ecommerce seller checking margins across a catalog before a sale or promotion.
- Restaurant or cafe pricing menu items off ingredient cost.
- Reseller or wholesaler converting between supplier markup and retail margin.
How it works
- 1Pick a mode: cost + revenue, cost + target margin, or revenue + target margin.
- 2Type your numbers — results update live, no Calculate button.
- 3Read your profit margin, markup, profit, and (when solving for it) the required selling price or maximum cost.
- 4Use the bulk table to price an entire product list at once, with totals and average margin.
- 5Check the formulas reference and the margin-vs-markup explainer if you need a refresher.
Frequently asked questions
- What is a good profit margin?
- It varies a lot by industry. Retail and grocery often run thin at ~5–10% net, service businesses commonly land around 15–30%, and software/SaaS can reach 70–90% gross margin. Compare yourself to your own industry's benchmarks rather than a single universal number — a 'good' margin for a restaurant would be alarming for software.
- 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. For a $60 item sold at $100 (profit $40), the margin is 40% and the markup is 66.7%. Markup is always the larger figure because cost is smaller than revenue.
- How do I calculate profit margin?
- Profit Margin = ((Revenue − Cost) / Revenue) × 100. Example: revenue $100, cost $60 → ((100 − 60) / 100) × 100 = 40%. This calculator does it instantly and can also work backward from a target margin to the price you need to charge.
- What is gross margin vs net margin?
- Gross margin is profit after only the direct cost of the product or service (cost of goods sold), before operating expenses. Net margin is what's left after everything — rent, salaries, marketing, taxes. This tool calculates the margin between the two numbers you enter; whether that's 'gross' or 'net' depends on whether your cost figure includes overhead.
- How can I improve my profit margin?
- Three levers: raise prices (even a small increase flows straight to profit), lower costs (negotiate suppliers, reduce waste, buy in volume), or shift your mix toward higher-margin products. Increasing volume helps total profit but not the margin percentage unless it also lowers your per-unit cost.
Ready to send an invoice? Use our free Invoice Generator. Self-employed? Estimate your quarterly taxes with the 1099 Tax Calculator. Know your margins? Estimate your business value.