Profit Margin Calculator
Enter revenue and cost to get your profit, profit margin and markup. Or enter a cost and a target margin to find the selling price.
Last updated November 2, 2026
Result
Profit margin = 40%
| Measure | Value |
|---|---|
| Profit | $60.00 |
| Profit margin | 40% |
| Markup | 66.67% |
Show the work
Formula: profit = revenue - cost; margin = profit / revenue x 100; markup = profit / cost x 100
- Entered: revenue $150.00, cost $90.00.
- Profit: $150.00 - $90.00 = $60.00.
- Margin: $60.00 / $150.00 x 100 = 40%.
- Markup: $60.00 / $90.00 x 100 = 66.67%.
Result: Profit margin = 40%
How profit margin is calculated
profit = revenue − cost
margin = profit ÷ revenue × 100
markup = profit ÷ cost × 100
Profit margin is the share of the selling price that is profit. Markup is the profit as a share of the cost. They use the same profit but divide by different numbers, so a 50% markup is only a 33.33% margin.
To reach a target margin, the selling price is the cost divided by (1 − margin). A 25% margin on a cost of $60 means a price of $60 ÷ 0.75 = $80. Margin has to be under 100%, because a price can never be all profit on a cost above zero.
See how we calculate for the formulas, sources and review schedule behind every calculator.
Margin vs markup
Margin is measured against the price, markup against the cost. Mixing them up is a common pricing mistake: adding a 30% markup to a cost does not give a 30% margin.
To convert, margin = markup ÷ (1 + markup) and markup = margin ÷ (1 − margin), with the percentages written as decimals. A 30% markup is therefore a margin of 0.3 ÷ 1.3 = 23.08%.
Pricing for a target margin
Price mode starts from a cost and the margin you want. With a cost of $60, the price is $75 for a 20% margin, $85.71 for 30%, $100 for 40% and $120 for 50%. Each extra 10 points of margin raises the price by a larger amount, because the margin is taken from the price itself.
The profit in each case is the price minus the cost, so $15, $25.71, $40 and $60. The calculator also reports the matching markup, which lets you compare the result with a supplier or a rule of thumb that is quoted as a markup.
How a discount cuts into margin
A discount comes straight out of profit because the cost does not change. Take the $150 item that costs $90, a 40% margin. At 10% off the price is $135, the profit falls from $60 to $45 and the margin to 33.33%. At 20% off the price is $120, the profit is $30 and the margin is 25%.
So a 10% price cut removes a quarter of the profit on this item. Enter the discounted price as the revenue to check a sale price before you set it.
Losses, zero cost and what counts as cost
When the cost is above the revenue the profit is negative. An item sold for $80 that cost $100 has a profit of −$20, a margin of −25% and a markup of −20%. With a cost of zero the markup cannot be worked out, so the calculator leaves it blank, and revenue must be above zero. A margin of exactly 0% means the price equals the cost and you have broken even.
The result is only as complete as the cost you enter. If you enter just the purchase price of the goods, you get a gross margin. Add shipping, fees and overhead to the cost to see a smaller, more realistic margin.
How to use the Profit Margin Calculator
- Choose Margin from revenue and cost, or Price for a target margin.
- Enter the amounts.
- Read the profit, margin and markup, or the selling price.
- Use Copy, Print or Share to keep the result.
Worked example
An item sells for $150 and costs $90. Profit is $150 − $90 = $60. Margin is $60 ÷ $150 = 40%. Markup is $60 ÷ $90 = 66.67%. The same profit gives a 40% margin and a 66.67% markup.
| Markup | Margin |
|---|---|
| 25% | 20% |
| 42.86% | 30% |
| 50% | 33.33% |
| 66.67% | 40% |
| 100% | 50% |
Frequently asked questions
What is the difference between margin and markup?
Margin is profit divided by the selling price, markup is profit divided by the cost. For the same sale the markup is always the larger percentage.
How do I calculate profit margin?
Subtract the cost from the revenue, divide by the revenue and multiply by 100.
How do I find the price for a target margin?
Divide the cost by 1 minus the margin as a decimal. For a cost of $60 and a 25% margin, $60 ÷ 0.75 = $80.
Can the margin be negative?
Yes. If the cost is higher than the revenue you have a loss and the margin is negative.
Are my numbers stored or sent anywhere?
No. The calculation runs in your browser and nothing you enter is saved or uploaded.