Profit Margin Calculator
The profit margin calculator helps businesses determine the right selling price based on cost and desired profit margin or markup. It clearly shows the difference between margin and markup.
Enter your cost and either the selling price, desired margin or desired markup to see the complete pricing breakdown.
Margin vs. Markup
Margin is the percentage of the selling price that is profit: (Profit/Revenue) x 100. Markup is the percentage added to cost: (Profit/Cost) x 100. A 50% markup equals a 33.3% margin.
Pricing Strategies
Cost-plus pricing adds a fixed markup to costs. Target-margin pricing starts with the desired margin and works backward to the maximum cost. Both approaches are supported by this calculator.
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