Free Profit Margin Calculator

Calculate profit, profit margin, markup and selling price instantly. Free, simple and easy to use with no account required.

Calculate Profit Margin

Your cost for one product or service.
Your selling price for one unit.

Find a Selling Price

Required Selling Price Per Unit
$100.00

Formulas

Profit = Selling Price − Cost
Profit Margin = Profit ÷ Selling Price × 100
Markup = Profit ÷ Cost × 100
Price for Target Margin = Cost ÷ (1 − Margin)
Price for Target Markup = Cost × (1 + Markup)

Results

Profit Per Unit
$40.00
Profit Margin
40.00%
Profit ÷ Selling Price
Markup
66.67%
Profit ÷ Cost
Selling Price
$100.00
Cost
$60.00
Total Revenue
$100.00
Total Cost
$60.00
Your calculation is based on gross profit before taxes, platform fees and other overhead costs.

Free Profit Margin Calculator

AIGoHelp's free Profit Margin Calculator helps you calculate profit, profit margin, markup and selling price quickly.

Enter your cost and selling price to see how much profit you make per unit, your gross profit margin and your markup percentage.

You can also work backward from a target profit margin or markup to find the selling price you should charge.

How to Calculate Profit Margin

Profit margin measures profit as a percentage of the selling price or revenue.

Profit = Selling Price − Cost
Profit Margin = (Profit ÷ Selling Price) × 100

For example, if a product costs $60 and sells for $100, the profit is $40 and the profit margin is 40%.

Profit Margin vs. Markup

Profit margin and markup are related, but they are not the same percentage.

Profit margin is calculated using the selling price as the base. Markup is calculated using the cost as the base.

Margin = Profit ÷ Selling Price
Markup = Profit ÷ Cost

For example, a product that costs $60 and sells for $100 produces $40 of profit. The profit margin is 40%, while the markup is 66.67%.

This difference is important when setting prices. A 50% markup does not produce a 50% margin.

How to Calculate Selling Price From a Target Margin

If you know your cost and want to achieve a specific profit margin, you need to calculate the selling price using the target margin.

Selling Price = Cost ÷ (1 − Target Margin)

For example, if your cost is $60 and you want a 40% profit margin:

$60 ÷ (1 − 0.40) = $100

Therefore, the required selling price is $100.

How to Calculate Selling Price From a Target Markup

Markup is calculated from cost, so calculating a selling price from a target markup is simpler.

Selling Price = Cost × (1 + Target Markup)

For example, if an item costs $60 and you want a 50% markup:

$60 × (1 + 0.50) = $90

The selling price would be $90. The resulting profit margin would be 33.33%.

Who Can Use This Calculator?

  • Small business owners
  • Retailers and wholesalers
  • E-commerce sellers
  • Freelancers and consultants
  • Service providers
  • Product distributors
  • Shopify and online store sellers
  • Anyone comparing product pricing

Frequently Asked Questions

What is profit margin?

Profit margin is profit divided by selling price or revenue, multiplied by 100.

What is the difference between margin and markup?

Margin is profit divided by selling price, while markup is profit divided by cost.

How do I calculate selling price from a target margin?

Divide the cost by one minus the target margin expressed as a decimal.

Is a 50% markup the same as a 50% margin?

No. A 50% markup produces a 33.33% profit margin.

Is this calculator free?

Yes. The AIGoHelp Profit Margin Calculator is free to use and does not require an account.