Free Tool

Profit Margin Calculator

Enter your selling price and your cost. The calculator shows your profit, your profit margin as a percentage of the price, and the markup as a percentage of the cost.

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Enter a revenue and cost above to see your profit, margin, and markup.

Margin vs markup

Margin and markup measure the same profit from two angles. Margin is profit as a share of the price you charge. Markup is profit as a share of what the item cost you. A $40 profit on a $100 sale is a 40% margin and a 66.7% markup.

This calculator shows both at once, so you can price from either direction. Need to price up from a known cost instead? Use the Markup Calculator.

Frequently Asked Questions

What is the difference between margin and markup?

Margin is profit as a percentage of the selling price. Markup is the same profit as a percentage of the cost. A $40 profit on a $100 sale is a 40% margin and a 66.7% markup. The calculator shows both at once.

How do I calculate profit margin?

Subtract cost from revenue to get profit, then divide profit by revenue. A $60 cost and a $100 price gives $40 profit and a 40% margin. The calculator does this as you type.

What counts as a good profit margin?

It varies by category and channel. Many e-commerce sellers aim for a 20% to 40% net margin after fees and shipping. Use the marketplace calculators to subtract platform fees before you judge the margin.

Is this profit margin calculator free?

Yes. It runs in your browser with no signup and no usage limit.

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Beyond This Tool

Built by a buyer intelligence platform

This free tool covers one step. DecodeIQ scans real buyer conversations across Reddit, YouTube, forums, and review sites, then writes listing copy in the language buyers use to decide.

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