Profit Margin Calculator
Find your margin and markup from cost and selling price — or work backwards to the price you need for the margin you want.
Free • No sign-up • Instant results
Margin = profit ÷ selling price. Markup = profit ÷ cost. They are not the same: a 50% margin means a 100% markup (you double the cost).
Profit margin
40%
How it works
Margin vs markup
Margin is profit as a share of the selling price; markup is profit as a share of cost. A product that costs 60 and sells for 100 has a 40% margin but a 67% markup.
Price from a target margin
Selling price = cost ÷ (1 − target margin). For a 30% margin on a cost of 70: 70 ÷ 0.7 = 100.
Frequently asked questions
What is a good profit margin?
It depends on the industry: groceries often run on single-digit margins, while software and services can exceed 50%. Compare with businesses like yours.
Should VAT be included?
No — calculate margins on prices excluding VAT, since VAT is collected for the government.