Profit Margin Calculator - Margin vs Markup Converter

Use this Profit Margin Calculator to calculate gross profit, Markup, Margin, and selling price locally. Enter cost and price, or cost and target margin, then calculate your margins instantly.

Click for theater mode

Pricing Inputs

Edit a valid pair, such as cost + price or cost + target margin, and the remaining metrics update automatically.

Example: cost 80 with a 20% target margin calculates a 100 selling price

All costs, prices, and rates are calculated locally in your browser.

Profit Result

Current basis: Cost + Selling Price
Gross Profit
$50
Margin
50%
Markup
100%
Cost
$50
Selling Price
$100

Selling Price Mix

Cost share50%
Profit share50%
Key Difference
Margin = Profit / PriceMarkup = Profit / Cost

How to Use

  1. To find your margin, enter Cost and Revenue / Selling Price. For example, cost 50 and price 100 returns gross profit 50, Margin 50%, and Markup 100%.
  2. To set a price from a target, enter Cost and Target Margin %. For example, cost 80 and target Margin 20% calculates a selling price of 100.
  3. Click "Load example" to start with a realistic ecommerce product, then adjust a valid pair of Cost, Selling Price, Margin, or Markup inputs to see how pricing changes affect your bottom line.

Core Features

  • Interactive Multi-Way Calculation: Enter cost and selling price, or cost with a target margin or markup, and the missing price, gross profit, Margin, and Markup values update instantly.
  • Margin vs. Markup Clarity: See both metrics side by side so you do not confuse profit as a share of revenue with markup over cost.
  • Determine Selling Price: Useful for Shopify sellers, Amazon sellers, freelancers, and small service providers who need to price offers from cost and target margin.
  • Gross Profit First: The result panel highlights absolute gross profit before percentage ratios, so you can see the real money outcome.
  • 100% Client-Side Privacy: Your product cost, price, and margin targets stay in your current browser and are not uploaded.

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Calculation Logic

This calculator focuses on product or service gross profit. It does not include taxes, ads, payroll, fulfillment, or other operating expenses.

Core formulas:

Grossย Profit=Revenueโˆ’Cost \text{Gross Profit}=\text{Revenue}-\text{Cost}
Margin=Grossย ProfitRevenueร—100% \text{Margin}=\frac{\text{Gross Profit}}{\text{Revenue}}\times100\%
Markup=Grossย ProfitCostร—100% \text{Markup}=\frac{\text{Gross Profit}}{\text{Cost}}\times100\%

For example, if cost is 50 and selling price is 100, gross profit is 50. Margin is 50% (50 / 100), but Markup is 100% (50 / 50). Treating a 20% markup as a 20% margin is a common reason new sellers underprice products.

FAQ

What is the difference between Margin and Markup?

Margin shows how much of revenue is profit, using selling price as the base. Markup shows how much you added on top of cost, using cost as the base. Margin is usually below 100%, while Markup can be much higher.

How do I price a product to get a 20% margin?

Many beginners multiply cost by 1.2, but that gives a 20% markup, not a 20% margin. The correct reverse formula is Price = Cost / (1 - 0.2). Enter cost and 20% Margin in the calculator to infer the selling price.

Does this calculator show Net Profit?

No. This tool calculates Gross Profit and product-level Margin. Net profit also requires taxes, ads, payroll, fulfillment, payment fees, and other operating costs.

Is a 20% profit margin good?

It depends on your industry, channel fees, and fulfillment costs. This calculator does not judge whether a margin is good; it shows the selling price and gross profit behind that target so you can compare it with your real costs.

Are my product costs saved on your server?

No. All calculations run locally in your browser. Your costs, prices, and target margins are not uploaded to a server.