Profit Margin & Markup Calculator
Calculate profit, gross margin and markup from cost and price — or find the selling price you need for a target margin or markup.
How to use
- 1Choose what you know: cost and price, or cost and a target margin or markup.
- 2Read the profit, margin and markup — and the price if you set a target.
How it's calculated
Profit = price − cost. Margin = profit ÷ price × 100. Markup = profit ÷ cost × 100. Price for a target margin = cost ÷ (1 − margin).
Frequently asked questions
What's the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of cost. A $50 item sold for $100 has 50% margin but 100% markup.
Why can't margin be 100% or more?
Margin is a share of the price, so even a free product (zero cost) only reaches 100%. Markup has no upper limit.
What's a good profit margin?
It varies widely by industry — grocery retail often runs on 1–3% net margin, while software can exceed 70% gross margin.