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Profit Margin Calculator
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Profit Margin
20%
Profit
$20.00
Markup
25%
Selling Price
$106.67
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How to Use the Profit Margin Calculator
- Choose mode: Calculate margin or find selling price
- Enter cost price
- Enter selling price or desired margin
- View margin, profit, and markup
Margin vs Markup
- Margin - Profit ÷ Selling Price × 100
- Markup - Profit ÷ Cost × 100
- Same profit, different percentages
- Margin is always lower than markup
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Frequently Asked Questions
What's the difference between margin and markup?
Margin is profit as percentage of selling price. Markup is profit as percentage of cost. Example: Buy for $80, sell for $100: 20% margin, 25% markup.
What is gross profit margin?
Gross margin is (Revenue - Cost of Goods) / Revenue × 100. It shows what percentage of sales is profit before operating expenses.
What's a good profit margin?
It varies by industry. Retail averages 2-5%, software 80%+. Generally, 10%+ net margin is considered healthy.
How do I calculate selling price from margin?
Selling Price = Cost / (1 - Margin%). For 30% margin on $70 cost: $70 / 0.70 = $100.