DevHive

Profit Margin Calculator

Calculate profit margin and markup

$
$
+$50
Profit / Loss
33.33%
Profit Margin
of selling price
50.00%
Markup
of cost
Breakdown
Revenue$150
Cost$100
Gross Profit$50
Profit Margin33.33%
Markup %50.00%

How to Use Profit Margin Calculator

  1. 1

    Enter your cost price and selling price.

  2. 2

    The tool calculates gross profit, profit margin percentage, and markup percentage.

  3. 3

    Use the results to check pricing or prepare financial summaries.

About Profit Margin Calculator

Calculate gross profit margin, markup, and selling price. Perfect for business pricing. Free calculator.

Best Use Cases

  • •Setting a selling price that achieves your target profit margin
  • •Checking whether a product's margin covers overhead and ad spend
  • •Comparing markup vs margin when negotiating wholesale pricing
  • •Reviewing profitability across product lines for a quarterly report
  • •Calculating gross margin for an Amazon or Shopify product listing

Examples

Price check

Enter cost 40 and selling price 100. See 60% margin and 150% markup instantly.

Target margin

Enter cost 25 and desired margin 40%. The tool calculates the required selling price.

Bulk comparison

Enter different cost and price pairs to compare margins across several products.

Common Mistakes to Avoid

  • !Confusing margin (% of selling price) with markup (% of cost price)
  • !Forgetting to include shipping or platform fees in the cost price
  • !Using revenue instead of cost when calculating markup percentage

Limitations

  • –Calculates gross margin only, not net margin after operating expenses
  • –Does not factor in shipping, returns, or platform commission fees
  • –Cannot pull live cost data from your inventory system

Disclaimer

This tool is for informational and educational purposes only. Results are estimates and should not be treated as financial, tax, legal, or investment advice. Always consult a qualified professional before making financial decisions.

Frequently Asked Questions

What is a good profit margin?

It depends on industry. Retail typically aims for 20-50%. SaaS can be 60-80%+. Service businesses often target 30-50%.

Margin vs markup - what's the difference?

Margin is profit as a % of selling price. Markup is profit as a % of cost. A 50% markup equals a 33% margin.