How to use Profit Margin Calculator
- Enter the cost of the product.
- Enter the selling price, or choose "target margin" to find the price.
- Read the profit, margin and markup.
About this tool
Margin is profit divided by the selling price, while markup is profit divided by cost, so the same sale shows a lower margin than markup. A product costing 60 and selling for 100 has a 40% margin and a 66.7% markup.
To hit a target margin, the price is cost divided by 1 minus the margin.
Frequently Asked Questions
- What is the difference between margin and markup?
- Margin is a percentage of the selling price, and markup is a percentage of the cost.
- What is gross margin?
- Revenue minus the direct cost of goods sold, as a share of revenue.
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