Profit Margin Calculator
Free profit margin calculator — calculate profit margin %, markup, and selling price from cost and desired margin. Fast, browser-based tool for small businesses.
Disclaimer: This tool provides estimates for informational purposes only and does not constitute financial, tax, or legal advice. Results may vary based on your specific circumstances. Always consult a qualified professional before making financial decisions.
This free profit margin calculator lets you calculate gross profit margin percentage, markup percentage, and the optimal selling price from your cost and desired margin. Whether you are pricing a product, reviewing a project quote, or checking whether your current pricing is actually profitable, this tool gives you the numbers in seconds.
Profit margin and markup are related but different. Gross profit margin is profit as a percentage of the selling price: (Selling Price − Cost) ÷ Selling Price × 100. Markup is profit as a percentage of cost: (Selling Price − Cost) ÷ Cost × 100. A 50% markup produces a 33% margin — not the same thing. Confusing the two is one of the most common pricing mistakes in small business.
Enter your cost and desired profit margin percentage, and the calculator shows you the selling price that achieves that margin, along with the equivalent markup percentage and the gross profit amount. Or enter cost and selling price to see what margin and markup you are currently achieving.
This tool calculates gross profit margin — it does not account for operating expenses, taxes, or overhead beyond the direct cost you enter. For a full picture of profitability, you would also need to factor in your operating expense ratio and tax rate. But gross margin is the right starting point for pricing decisions at the product or service level.
If you know what margin you need to stay viable, this calculator makes it simple to set the right price rather than guessing and checking.
Frequently Asked Questions
- How do I calculate profit margin?
Gross profit margin = (Selling Price − Cost) ÷ Selling Price × 100. For example, if you sell a product for $100 and it costs $60 to produce, your gross margin is ($100 − $60) ÷ $100 = 40%. Enter your cost and selling price into this calculator to get the result instantly.
- Is there a free profit margin calculator?
Yes. This profit margin calculator is completely free — no account, no signup. Enter your cost and selling price to see your margin and markup, or enter cost and desired margin to calculate the selling price. Browser-based, no download required.
- What is the difference between profit margin and markup?
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of cost. A 100% markup means you doubled your cost, which gives a 50% margin. They are always different numbers. This calculator shows both so you can use whichever your industry or accounting system prefers.
- What is a good profit margin for a small business?
It depends heavily on the industry. Retail often runs 2–10% net margin. SaaS and software can run 60–80% gross margin. Service businesses typically target 20–40% gross margin. Use industry benchmarks as a reference, but your personal break-even calculation sets your minimum viable margin.
- How do I find the selling price from cost and desired margin?
Selling Price = Cost ÷ (1 − Desired Margin). For example, if cost is $60 and you want a 40% margin: $60 ÷ (1 − 0.4) = $60 ÷ 0.6 = $100. Enter cost and desired margin percentage into this calculator to get the selling price without the arithmetic.
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