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KitWren

Profit Margin Calculator

Calculate gross margin, markup and profit from cost and price — or find the price for a target margin.

  1. Enter your numbers
  2. Results update as you type
  3. Copy the answer or share the link
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About the Profit Margin Calculator

Enter what an item costs you and what you sell it for to see your profit, gross margin and markup — or enter a target margin to get the price you need to charge.

How does the Profit Margin Calculator work?

Margin is profit as a share of the selling price; markup is profit as a share of cost. To hit a target margin, divide the cost by (1 − margin).

Profit Margin Calculator formula

profit = price − cost
margin = profit ÷ price × 100
markup = profit ÷ cost × 100
price for margin m = cost ÷ (1 − m)

Example

Cost $60, price $100 → profit $40, margin 40%, markup 66.67%.

Frequently asked questions

Is margin the same as markup?

No. A product costing $60 and selling for $100 has a 40% margin but a 66.7% markup. Margins can never reach 100%; markups can be any size.

What is a good profit margin?

It depends heavily on the industry — groceries often run on single-digit margins while software can exceed 70%. Compare with businesses like yours.