Profit is price minus cost. Margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. The calculator shows all three and works out the selling price needed for a target margin.
How to calculate profit margin
- Enter the cost price and the selling price.
- Read profit, margin and markup.
- Enter a target margin to get the price you should charge.
Margin vs markup
A product that costs 700 and sells for 1,000 makes 300 profit: a 30% margin (300 ÷ 1,000) but a 42.9% markup (300 ÷ 700). Mixing them up is a common pricing mistake that leaves sellers with thinner profits than planned.
Frequently asked questions
How do I price for a 40% margin?
Divide the cost by 0.6 (1 − 0.40). A cost of 700 needs a price of 1,166.67.
Updated October 2026 · Built and tested by Sharjeel Tahir · How our tools are tested