Free Profit Margin Calculator
Enter your cost and selling price to instantly see your profit, margin, and markup. Handy for pricing products, evaluating client projects, and understanding the difference between margin and markup.
Margin is profit as % of revenue. Markup is profit as % of cost. Same profit, different denominator.
How the profit margin calculator works
One formula, three perspectives — profit, margin, markup.
Enter cost and revenue
Cost is the total you paid to produce or acquire the item — including materials, labour, and fees. Revenue is the price you sell at.
See the three figures
Profit is revenue minus cost. Margin = profit ÷ revenue × 100. Markup = profit ÷ cost × 100. All three update live as you type.
Use the right number
Use margin to talk about pricing and gross profit. Use markup when setting prices from a cost base (common in retail and contracting).
Why use this calculator
Instant results
Every change recalculates live — no loading, no wait. Run scenarios in seconds.
Runs in your browser
Nothing is sent to our servers. Your numbers stay on your device.
12 languages
Use it in English, Spanish, French, German, Portuguese, Italian, Dutch, Polish, Japanese, Korean, Chinese, or Arabic.
Accurate and transparent
Clean math with clear breakdowns so you understand every figure — not a black box.
Want to go further than a calculator?
Create a free KipBill account to invoice clients, track payments, manage taxes, and send reminders automatically.
Open free accountProfit Margin Calculator — FAQ
What is the difference between margin and markup?+
They both express the same profit but with different denominators. Margin = profit / revenue. Markup = profit / cost. A product costing $60 sold at $100 has $40 profit, 40% margin, and 66.7% markup. Margin never exceeds 100%; markup can.
What is a good profit margin?+
It depends on the industry. Typical gross margins: software 70-90%, agencies 50-70%, retail 30-50%, restaurants 5-15%, grocery 1-5%. Compare to your category, not across industries.
How do I calculate profit margin?+
Subtract cost from revenue to get profit. Divide profit by revenue and multiply by 100 for margin percentage. Example: $100 revenue - $60 cost = $40 profit; 40 / 100 × 100 = 40% margin.
How do I calculate markup?+
Subtract cost from revenue to get profit. Divide profit by cost and multiply by 100 for markup percentage. Example: $100 revenue - $60 cost = $40 profit; 40 / 60 × 100 = 66.7% markup.
How do I set a selling price to hit a target margin?+
Revenue = cost ÷ (1 - target margin). For a $60 cost and 40% target margin: 60 / 0.60 = $100 selling price. Tip: use margin (not markup) when talking to investors or forecasting gross profit.
Can I use any currency?+
Yes — the calculator is currency-agnostic. Type whichever currency you operate in; the math is the same.