Profit Margin & Markup Calculator
Enter what an item costs you and what you sell it for. You'll get gross profit per unit, your profit margin (profit as a share of price) and your markup (profit as a share of cost) — the two numbers people constantly mix up.
Price = cost + profit
How you compare
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Get itMargin vs. markup
Margin and markup describe the same profit from two angles. A $40 profit on a $100 sale is a 40% margin but a 66.7% markup on a $60 cost. Pricing off markup feels bigger; what hits your bank account is margin.
How it’s calculated
Gross profit = price − cost. Margin = profit ÷ price; markup = profit ÷ cost.
Results update as you type and are estimates, not professional advice — verify important decisions with a qualified professional.
Worked example
Sell an item that costs $60 for $100: gross profit is $40, a 40% margin and a 66.7% markup.
Common mistakes
- Confusing margin (share of price) with markup (share of cost).
- Forgetting platform fees, returns, and overhead, which are not in gross margin.
Where it is used
- Setting retail prices to hit a target margin.
- Checking whether a wholesale order still leaves enough profit.
Frequently asked questions
What's a good profit margin?
It varies by industry — retail often runs 5–15%, software far higher. Compare against peers in your niche rather than a universal target.
How do I convert markup to margin?
Margin = markup / (1 + markup). A 50% markup equals a 33.3% margin.
Does this include taxes or fees?
No — this is gross margin before taxes, platform fees, and overhead. Use our marketplace fee calculator for selling-platform costs.
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