Profit Margin Calculator

Here's where it actually bites: a 50% markup on a $100 cost gives you a $150 selling price, which sounds like it should be a 50% margin too, but it isn't. Gross profit of $50 divided by that $150 selling price works out to roughly 33% margin, a meaningfully different number from the markup percentage, and exactly the kind of gap that causes underpricing if you're mentally treating the two terms as the same thing.

Margin percentages also vary wildly by industry in a way that's worth knowing as a benchmark, software businesses often clear 80% or higher given minimal per-unit production cost, while a grocery store might run on margins as thin as 1 to 3%, relying on high volume rather than high markup to stay profitable.

Enter your product's cost and your selling price, and the calculator outputs gross profit in dollars, your margin percentage, and your markup percentage, all three at once so the distinction between margin and markup is immediately visible.

If you already know your target margin and need to work backward to a price instead, the calculator handles that direction too, useful when you're setting a price specifically to hit a margin goal rather than checking an existing price after the fact. Your cost figures and pricing strategy stay entirely private, calculated locally.