Margin Calculator
Calculate profit margin, markup, cost, selling price, and gross profit in seconds. This tool is useful for store owners, freelancers, ecommerce sellers, agencies, and anyone who wants to price products or services with confidence.
Calculate Your Margin
Results
What Is a Margin Calculator?
A margin calculator helps you understand how much profit you make after subtracting the cost from the selling price. Instead of guessing your prices, you can quickly check whether your product or service gives you a healthy profit margin.
For example, if a product costs you $50 and you sell it for $80, your profit is $30. The margin calculator then shows what percentage of the selling price is profit.
Profit Margin
Find the percentage of revenue that becomes profit after your cost is removed.
Markup Rate
Compare your selling price with your cost price and see how much you marked it up.
Better Pricing
Use the result to price products, services, digital items, or ecommerce offers.
How This Margin Calculator Works
Enter Your Cost
Add the amount you spend to buy, create, or deliver the product or service.
Enter Selling Price or Desired Margin
You can calculate margin from cost and selling price, or calculate a selling price from your desired margin.
Review Profit, Margin, and Markup
The tool instantly shows gross profit, margin percentage, markup percentage, cost price, and selling price.
Margin Formula
The basic profit margin formula is:
Profit Margin = Profit ÷ Selling Price × 100
The markup formula is:
Markup = Profit ÷ Cost Price × 100
Margin is usually better for understanding business profitability, while markup is useful when deciding how much extra to add above your cost.
Why Profit Margin Matters
A good profit margin helps your business cover operating expenses, marketing costs, taxes, payment fees, shipping costs, and unexpected losses. Many beginners only look at revenue, but revenue alone does not show whether a business is actually profitable.
This margin calculator gives you a simple way to check pricing before you launch a product, create a quote, run a discount, or compare suppliers.
Frequently Asked Questions
What is a good profit margin?
A good profit margin depends on your business type. Some industries work with small margins, while digital products and services may have higher margins. The main goal is to keep enough profit after all costs.
What is the difference between margin and markup?
Margin is calculated from the selling price. Markup is calculated from the cost price. This is why margin and markup percentages are usually different.
Can I use this calculator for services?
Yes. You can use it for services, products, ecommerce items, agency work, freelance projects, or any offer where you know the cost and selling price.
Does this calculator include tax or shipping?
The calculator works with the values you enter. If tax, shipping, payment fees, or packaging are part of your cost, include them in your cost price for a more accurate result.
How do I calculate selling price from margin?
Enter your cost price and desired margin percentage in the selling price tab. The calculator will show the selling price needed to reach that margin.