Profit Margin Calculator

Profit margin shows how much of the selling price you keep as profit. Markup shows how much you added on top of the cost. Both measure the same profit against a different base: • Profit = selling price − cost • Margin = profit ÷ selling price × 100 • Markup = profit ÷ cost × 100 Example: buy for $80 and sell for $100 and your profit is $20. That is a 20% margin but a 25% markup. To price for a target margin: selling price = cost ÷ (1 − margin). For a 30% margin on a $70 cost, charge $70 ÷ 0.70 = $100. A common mistake is adding 30% to the cost ($91) and assuming that gives a 30% margin; it is only about 23%. Use prices without sales tax. Adding costs that come with each sale, such as shipping or platform fees, to the cost gives a truer picture of what you earn.