Profit Margin Calculator

The Profit Margin Calculator converts a revenue figure and a cost figure into the three numbers every pricing decision needs: absolute profit, profit margin, and markup. Sellers use it to price products, freelancers use it to sanity-check quotes, and buyers use it to understand retailer economics.

Margin and markup are related but not interchangeable, and confusing them quietly destroys pricing. Margin is profit divided by revenue and says what slice of each sale you keep; markup is profit divided by cost and says how much you added on top. A product bought for 60 and sold for 100 earns 40 profit: a 40 percent margin but a 66.7 percent markup. If your target is a 40 percent margin, the required markup is about 66.7 percent, not 40 - pricing at cost plus 40 percent yields only a 28.6 percent margin.

Enter revenue as the full selling price and cost as the total landed cost of that sale, including shipping, fees, and packaging, not just the wholesale price. A negative result flags that you are selling below cost before you discover it in accounting.

For loans and financing costs rather than product economics, use the Loan Payment Calculator. All figures stay on your device.