Profit Margin Calculator

What is profit margin?

Gross profit margin is the percentage of revenue left after subtracting the cost of goods sold (COGS). For example, if you sell a product for $100 and it costs $50, your gross profit is $50 and your gross margin is 50%.

Markup is the percentage you add to your cost to arrive at the selling price. A 50% margin is a 100% markup — they're related but not the same. This calculator shows both.

Why use this?

• Sellers and online store owners: Know your margins per product to set competitive prices while staying profitable.
• Freelancers and agencies: Calculate service profitability when you know delivery cost and client price.
• Small business owners: Understand your pricing strategy and where you have room for discounts, ads, or growth.

How to use

1. Margin calculator mode: Enter your cost price and selling price to see gross profit, margin %, markup %, and your break-even point.
2. Price setter mode: Enter your cost and desired margin % to find the ideal selling price.
3. Cost finder mode: Enter your target selling price and desired margin to determine the maximum you can spend.

Pricing tips

• Compare margin vs markup — many new sellers confuse them when pricing products.
• Aim for at least 40–50% gross margin on physical products to cover shipping, returns, and marketing.
• Service businesses often target 60–80% margins since overhead is lower.
• Use the "price setter" mode to back into a price from your desired margin.