Margin Calculator
Enter cost and selling price to instantly get your margin rate and profit. A free online margin calculator that also reverse-calculates the price.
Input
Enter the cost and selling price to calculate your margin rate.
The Margin Calculator turns a product cost and selling price into a profit margin percentage and the actual profit per unit. It is handy for retailers, freelancers, and resellers who need to check whether a price leaves enough room after costs, or who want to work backwards from a target margin to set the right price.
How to use the Margin Calculator
- Enter the cost of the item (what you paid to buy or make it).
- Enter the selling price you charge customers.
- Read the profit margin percentage and the profit amount per unit.
- Optionally switch to reverse mode and type a target margin to get the selling price you need.
Frequently asked questions
- How is profit margin calculated?
- Margin % = (price - cost) / price x 100. For example, with a cost of 60 and a price of 100, the margin is (100 - 60) / 100 x 100 = 40%, and the profit is 40 per unit.
- What is the difference between margin and markup?
- Margin is profit as a percentage of the selling price, while markup is profit as a percentage of the cost. The same 40 profit on a 60 cost is a 40% margin but a 67% markup, so the two numbers are not interchangeable.
- Can I find the price from a target margin?
- Yes. Use the reverse mode and enter your cost and the margin you want, and the tool solves price = cost / (1 - margin/100). A 60 cost at a 40% target margin gives a price of 60 / 0.6 = 100.
- Does this include taxes or shipping?
- No, it only uses the cost and price you enter. To get a true margin, fold shipping, fees, and other per-unit expenses into the cost field before calculating.