Calculate profit margin, markup, and selling price instantly.
What you paid / your cost
What you charge the customer
Profit margin expresses profit as a percentage of the selling price. A 33% margin means 33 cents of every dollar you collect is profit.
Markup expresses profit as a percentage of the cost price. A 50% markup means you charged 50 cents more than what you paid per dollar of cost.
Margin % = (Sell − Cost) ÷ Sell × 100
Markup % = (Sell − Cost) ÷ Cost × 100
Example: Cost $100, Sell $150
Margin = ($150 − $100) ÷ $150 × 100 = 33.33%
Markup = ($150 − $100) ÷ $100 × 100 = 50%
The same profit looks bigger as a markup than as a margin. Retailers typically quote markup; accountants and investors typically quote margin. Make sure you know which one your supplier or buyer is using to avoid pricing mistakes.
It depends heavily on industry. Some rough benchmarks:
A margin under 10% leaves very little room for error — one bad month, unexpected cost, or price drop from a competitor can wipe it out. Aim for at least 20% in most businesses to have a sustainable buffer.
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Profit Margin % = (Selling Price − Cost Price) ÷ Selling Price × 100. For example, if you sell something for $150 that cost $100, your margin is ($150 − $100) ÷ $150 × 100 = 33.33%.
Three calculators in one: find your profit margin from cost and selling price, calculate what to charge given a target margin, or work out the maximum cost to hit a margin goal. All calculations update in real time. Includes a margin vs markup explainer and industry benchmarks. Free, no signup, works entirely in your browser.