How to use (3 steps)
- Pick what to solve: margin from cost & price, price from target margin, or cost from target margin.
- Enter the known values, keep quantity at 1 or raise it to see total profit.
- Results update automatically; copy the URL to share the same setup.
Inputs
Use tax-exclusive prices here. Currency symbol is cosmetic only; calculations use the numbers you type.
Profit margin
Margin = profit ÷ selling price. Markup = profit ÷ cost.
Total profit = profit per unit × quantity.
How it’s calculated
This calculator uses standard business definitions of profit margin and markup.
- Profit margin = (selling price − cost) ÷ selling price
- Markup = (selling price − cost) ÷ cost
Example: cost 700, selling price 1,000
- Profit per unit = 1,000 − 700 = 300
- Margin = 300 ÷ 1,000 = 30.00%
- Markup = 300 ÷ 700 ≈ 42.86%
- With quantity 5, total profit = 300 × 5 = 1,500
This tool focuses on gross profit per unit and does not take into account overhead, taxes or other indirect costs.
FAQ
What’s the difference between margin and markup?
Margin divides profit by the selling price, while markup divides profit by the cost. Both describe the same profit, just with different denominators.
Can margin be 100% or higher?
No. At 100% margin the formula would make selling price infinite, so this calculator limits margin input to 99.99%. When cost is 0, markup is shown as “not defined” instead of infinity.
Does this include tax, shipping, or overhead?
No. It focuses on unit gross profit. Add tax and other costs separately if you need them for full profitability analysis.
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