How to Use the Profit Margin Calculator
- Enter the cost of the item.
- Enter the selling price.
- See profit, margin percentage and markup instantly.
- Adjust the price to hit a target margin.
Frequently Asked Questions
What's 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. A 50% markup on a $10 cost gives a $15 price but only a 33% margin.
How is gross margin calculated?
Gross margin = (selling price − cost) ÷ selling price × 100. It shows what portion of each sale is profit before other expenses.
Can I work backwards from a target margin?
Adjust the selling price and watch the margin update until you reach the percentage you want.