Profit Margin Calculator

Work out margin and markup from cost and price, or find the price to charge for the margin you want.

Results

Enter your numbers to see the results.

Estimate only, not tax, accounting or pricing advice. Margin and markup are different percentages of different bases. Marketplace fees (Etsy, eBay and others) are extra costs — add them in those fee calculators rather than treating this page as a payout.

Last reviewed: November 5, 2026

Enter a cost and a selling price to see your profit in dollars, your margin (profit divided by price) and your markup (profit divided by cost). They are not the same number: a $40 cost and a $50 price is a 20% margin and a 25% markup. You can also work backward — pick a target margin or markup and get the lowest price that still hits it, or start from a price and see the most you can spend on cost.

How to use it

Choose a mode: Cost & price, Price from margin, Price from markup, Max cost from margin, or Max cost from markup.
Enter the figures that mode needs. Cost can be $0.00 in cost-and-price mode; the selling price has to be greater than $0.00 whenever it is required.
For a target, enter a desired margin under 100%, or a desired markup of 0% or more.
Read the profit, the margin %, the markup % and, in the solving modes, the price to charge or the most you can spend. After rounding, the tool also shows the achieved margin and markup so you can check the math by hand.

Margin vs markup

Profit = price − cost.
Margin = profit ÷ price.
Markup = profit ÷ cost.

On a $10.00 item that cost $8.00, profit is $2.00. Margin is 2 ÷ 10 = 20.00%. Markup is 2 ÷ 8 = 25.00%. People often say “I need a 20% markup” when they mean a 20% margin, which would require a higher price.

How it works

From a known cost C and price P: profit = P − C; margin = profit ÷ P; markup = profit ÷ C. Percents display to two decimal places, rounded half-up (so 1/3 is 33.33%).
Price from a desired margin m: P has to satisfy (P − C) ÷ P ≥ m, which is P ≥ C ÷ (1 − m). This is a price you charge, so the tool picks the lowest whole cent that still meets the target — not a blind round-up of an already-exact cent.
Price from a desired markup u: P ≥ C × (1 + u), with the same lowest-cent rule on (P − C) ÷ C ≥ u.
Max cost from a desired margin: C ≤ P × (1 − m). This is a ceiling (the most you can spend and still hit the margin), so it rounds down, then steps a cent if needed so the inequality still holds.
Max cost from a desired markup: C ≤ P ÷ (1 + u), same round-down ceiling.
After a solved price or cost, the displayed margin and markup are recomputed from the rounded money figures.
A desired margin of 100% or more is rejected: “Margin must be under 100% (a 100% margin would mean a $0.00 cost).”
Cost $0.00 with a price above $0.00: margin is 100.00% and markup is “n/a (cost is $0.00).” Cost equal to price: 0.00% margin and 0.00% markup. A cost above the price is allowed in cost-and-price mode and shows a negative profit, margin and markup.

Worked examples

Cost and price, the usual mix-up (PM1).

Cost $40.00, price $50.00. Profit is $10.00. Margin is 20.00%. Markup is 25.00%.

The same 20% / 25% split on smaller numbers (PM5).

Cost $8.00, price $10.00. Profit is $2.00, margin 20.00%, markup 25.00%.

A one-third margin (PM6).

Cost $2.00, price $3.00. Profit is $1.00. Margin is 1 ÷ 3 = 33.33%. Markup is 50.00%.

Price from a 40% margin (PM2).

Cost $12.50 and a 40% target. Raw price is 12.50 ÷ 0.60 = 20.8333…. At $20.83 the margin would be 39.99%, which misses the target, so the price to charge is $20.84. Profit is $8.34. The achieved margin is 40.02% and the markup is 66.72%.

Price from a 50% markup (PM3).

Cost $7.33. Raw price is 7.33 × 1.50 = 10.995. At $10.99 the markup would be 49.93%, so the price to charge is $11.00. Profit is $3.67. Margin is 33.36% and the achieved markup is 50.07%.

Max cost from a 35% margin (PM4).

Price $29.99. Raw cost is 29.99 × 0.65 = 19.4935. At $19.50 the margin would be 34.98%, below target, so the most you can spend is $19.49. Profit is $10.50. The achieved margin is 35.01% and the markup is 53.87%.

Max cost from a 60% markup (PM7).

Price $80.00. $80.00 ÷ 1.60 is exactly $50.00, so the most you can spend is $50.00. Profit is $30.00, margin 37.50%, markup 60.00%.

Price from a 33.33% margin (PM8).

Cost $19.99. The price to charge is $29.99. Profit is $10.00. The achieved margin is 33.34% and the markup is 50.03%.

Margin and markup at a glance

Cost	Price	Profit	Margin	Markup
$40.00	$50.00	$10.00	20.00%	25.00%
$8.00	$10.00	$2.00	20.00%	25.00%
$2.00	$3.00	$1.00	33.33%	50.00%

FAQ

What is the difference between margin and markup?

Margin is profit as a share of the selling price. Markup is profit as a share of cost. On a $50.00 sale with a $40.00 cost, margin is 20% and markup is 25%. They only match at 0%.

How do I calculate profit margin?

Subtract cost from price, then divide that profit by the price. $10.00 of profit on a $50.00 price is a 20.00% margin.

How do I find the price from a desired margin?

Divide cost by (1 − margin). For a $12.50 cost and a 40% margin, 12.50 ÷ 0.60 = 20.8333…, and the lowest price that still hits 40% is $20.84.

Why is the shown margin a little above my target?

Because the price is rounded to a whole cent. The tool never shows a price that would fall short, so a fraction of a cent often pushes the achieved margin slightly above the target (40.02% in the $12.50 example, 33.34% when the target was 33.33%).

How do I find the most I can spend on cost?

For a margin target, multiply the price by (1 − margin) and take the highest cent that still meets it. For $29.99 at a 35% margin, that is $19.49, not $19.50.

Does this include Etsy or eBay fees?

No. This page is fee-agnostic on purpose. Platform fees change your real cost and your take-home. Use the Etsy Fee & Profit calculator or the eBay Fee calculator, then come back here if you want a clean margin or markup on the numbers you already have.

Can I enter a loss?

Yes, in cost-and-price mode. If cost is higher than price, profit, margin and markup are negative. A desired margin or markup cannot be negative.

What if my cost is $0.00?

If the price is above $0.00, margin is 100.00% and markup is n/a, because you cannot divide profit by a zero cost.