What is Profit Margin Calculator?
A Profit Margin Calculator computes the percentage of revenue that remains as profit after deducting costs. It also helps you find the right selling price to achieve a target profit margin.
Profit Margin CalculatorFree Online Calculator Tool
Profit Margin Calculator is a free online calculator tool. Calculate profit margins and find the right selling price for your products and services.
Input
Values
Action
Calculate result
Output
View answer
Runs in your browser when supported. No signup required.
Enter Values
Input cost and revenue
Results
Your profit metrics
Profit Margin
60.00%
Profit
$60.00
Markup
150.00%
Gross Margin
60.00%
100% Private
Instant
Any Device
Free Forever
How to use & TipsSteps
- 1Enter your product cost
- 2Enter the selling price
- 3View profit margin, gross margin, and markup
- 4Or use 'Find Selling Price' to calculate price for a target margin
Use Cases
- -Price products for desired profit margin
- -Analyze product profitability
- -Compare margins across product lines
- -Set wholesale vs retail pricing
- -Evaluate business financial health
About Profit Margin Calculator
Everything you need to know about this tool and how to get the most out of it.
How Profit Margin Calculator Works
Enter your cost and selling price to calculate profit margin, gross margin, and markup. Or use the 'Find Selling Price' tab to determine what price to charge to achieve a desired margin percentage.
Why Use Profit Margin Calculator?
Profit margin is the fundamental metric of business health. Knowing your margins helps you price products correctly, identify unprofitable products, and make informed business decisions. Many businesses fail because they don't track margins carefully.
Tips & Best Practices
- 1Profit margin and markup are different: a 50% markup equals a 33% profit margin
- 2Aim for margins that cover overhead costs — a 30% gross margin may only yield 5-10% net margin after expenses
- 3Compare your margins to industry benchmarks to assess competitiveness