Business Calculator

PROFIT MARGIN CALCULATOR

Calculate gross profit, margin, markup, and selling price. Enter cost + margin for revenue, or cost + revenue for margin and markup.

Presets:

Cost + Margin

Cost Price

Desired Margin

Selling Price

$166.67

Gross Profit

$66.67

Cost + Revenue

Cost Price

Selling Price

Margin

50.00%

Markup

100.00%

Profit

$100.00

Currency

Revenue: $166.67 Cost: $100.00 Profit: $66.67 Margin: 40.00%

Goal Seek

Your Cost

Target Profit

Target Margin

Req. Revenue

$166.67

Req. Price

$166.67

Actual Margin

40.00%

Discount Impact

Cost Price

List Price

Discount

Original Margin

50.00%

Effective Margin

37.50%

Effective Price After Discount

$160.00

Cost Change Impact

Current Cost

Current Price

Cost Change

Current Margin

50.00%

New Margin

41.30%

Price Needed to Maintain Margin

$230.00

Volume Compensator

Current Price

Variable Cost

Current Volume

Price Drop

Current Profit

$25,000

New Price

$45.00

Volume Needed to Maintain Profit

1,250

New Contribution Margin: $20.00

Scenario Comparison

	Conservative	Moderate	Aggressive
Cost / Unit	$	$	$
Sell Price	$	$	$
Volume

Conservative

Rev: $90,000

Profit: $40,000

Margin: 44.44%

Moderate ★

Rev: $80,000

Profit: $40,000

Margin: 50.00%

Aggressive

Rev: $62,500

Profit: $40,000

Margin: 64.00%

Price Sensitivity

Cost / Unit

Base Price

Step

Price Point	Change	Price	Profit / Unit	Margin	Markup
-20%	-20%	-	-	-	-

Markup ↔ Margin

Margin

→ Markup: 66.67%

Markup

→ Margin: 40.00%

Quick Reference

Margin	Markup	Multiplier	Profit / $100

Frequently Asked Questions

What is profit margin and how is it different from markup?

Profit margin is the percentage of revenue that is profit, calculated as (Revenue − Cost) / Revenue × 100. Markup is the percentage above cost, calculated as (Revenue − Cost) / Cost × 100. For example, if an item costs $100 and sells for $150, the margin is 33.3% and the markup is 50%.

What is a good profit margin for small business?

Healthy profit margins vary by industry. Retail typically sees 5-20%, restaurants 3-15%, consulting 20-50%, and software 60-80%. A 40% margin is considered strong for most product-based businesses.

How do I calculate selling price from cost and margin?

Use the formula: Selling Price = Cost / (1 − Margin%). For example, if an item costs $100 and you want a 40% margin: $100 / (1 − 0.40) = $166.67. Enter cost and desired margin in Card 1 to see the result instantly.

What is the difference between gross margin and net margin?

Gross margin only considers the direct cost of goods sold (COGS). Net margin includes all operating expenses, taxes, and interest. This calculator computes gross margin, not net margin.

What is a break-even point?

The break-even point is when total revenue equals total costs (fixed + variable). Calculate it as: Fixed Costs / (Selling Price − Variable Cost per Unit). Our Break-Even tab shows units needed and revenue required to break even.

How does the multi-product calculator work?

Add multiple products with their cost and selling price. The table shows per-product profit, margin, and markup, plus totals for cost, revenue, profit, and weighted average margin across all products. Export the data as CSV for your records.

How do I convert between margin and markup?

Use the Markup ↔ Margin converter. Enter a margin percentage to get the equivalent markup, or enter a markup to get the margin. For example, a 40% margin equals a 66.67% markup.

How does Goal Seek work?

Enter your cost, target profit, and target margin. The tool calculates the required selling price and revenue to hit your profit goal at your desired margin. If both profit and margin are provided, margin takes priority.

How does a discount affect my profit margin?

Use the Discount Impact tool. Enter your cost, list price, and discount percentage to see both the original margin and the effective margin after the discount. For example, a 20% discount on a product with 50% margin drops your effective margin to 37.5%.

How do cost increases impact my margin?

The Cost Change Impact tool shows how a cost increase or decrease affects your margin at the current price, and calculates the new price needed to maintain your original margin percentage.

How much more volume do I need after a price cut?

The Volume Compensator answers: if I lower my price by X%, how many more units must I sell to maintain the same total profit? Enter your current price, variable cost, volume, and planned price drop to find out.

What is Scenario Comparison?

Compare three pricing strategies side by side: Conservative (lower price, higher volume), Moderate (balanced), and Aggressive (higher price, lower volume). Each scenario shows total revenue, profit, and margin at a glance.

How does Price Sensitivity work?

Enter a base price and step percentage. The tool shows profit per unit, margin, and markup at five price levels (from -20% to +20% in configured steps) so you can find the optimal price point for your product.

How to Use

Margin Calculator

Choose Cost + Margin to find selling price from cost and desired margin, or Cost + Revenue to find margin and markup from cost and selling price. Use preset buttons for quick scenarios.

Multi-Product Analysis

Enter multiple products with cost and selling price in the table. View per-product margins and weighted averages. Add or remove rows, export to CSV.

Break-Even Analysis

Enter fixed costs, variable cost per unit, and selling price to find break-even units, revenue, contribution margin, and profit projections at various volume levels.

Analysis Tools

Goal Seek finds the price needed for a target profit at a given margin. Discount Impact shows how discounts erode margin. Cost Change simulates cost increases/decreases. Volume Compensator shows the volume needed after a price cut to maintain profit.

Scenario Comparison

Compare three pricing strategies side by side. Enter cost, price, and volume for Conservative, Moderate, and Aggressive scenarios to see revenue, profit, and margin for each.

Price Sensitivity

Enter cost, base price, and step % to see profit, margin, and markup at five price levels. Find the optimal price point for maximum profitability.

Markup ↔ Margin Converter

Enter either a margin or markup percentage to instantly see the equivalent value. The Quick Reference table shows common margin-markup pairs for rapid lookup.

How to Calculate

Margin Calculation: Profit Margin = (Revenue − Cost) / Revenue × 100. This shows what percentage of your selling price is profit.

Markup Calculation: Markup = (Revenue − Cost) / Cost × 100. This shows how much you added above cost.

Selling Price from Margin: Revenue = Cost / (1 − Margin%). Divide the cost by 1 minus the desired margin percentage to get the required selling price.

Break-Even: Break-Even Units = Fixed Costs / (Selling Price − Variable Cost per Unit). The contribution margin (price minus variable cost) shows how much each unit contributes to covering fixed costs.

Discount Impact: Effective Margin = (Discounted Price − Cost) / Discounted Price × 100. A discount reduces both price and margin percentage.

Volume Compensator: Needed Volume = Current Profit / (New Price − Variable Cost). Shows how many units at the new lower price generate the same total profit.

All calculations run in your browser — no data is sent to any server.

About the Profit Margin Calculator

This free online Profit Margin Calculator helps business owners, retailers, and e-commerce sellers quickly determine selling prices, gross profit, margin percentages, and markup percentages. Supports both cost-plus-margin and cost-plus-revenue methods.

Advanced features include a multi-product calculator with CSV export, a bidirectional markup↔margin converter, a quick reference table, a full break-even analysis, and a suite of analysis tools: Goal Seek, Discount Impact, Cost Change Simulator, and Volume Compensator. With 16 currencies and locale-aware formatting, this tool works for businesses worldwide.