Profit Margin Calculator

Enter your cost and selling price to instantly see your profit in dollars, your profit margin percentage, and your markup percentage — the two numbers every business owner confuses.

What it costs you to make or buy the product, per unit.

Your Results

Profit per unit
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Profit margin
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Markup
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How to use this calculator

  1. Enter your cost per unit — materials, production, or purchase cost.
  2. Enter your selling price per unit.
  3. Click Calculate to see profit, margin, and markup side by side.

Margin vs markup — the key difference

Margin is profit divided by selling price. Markup is profit divided by cost. With an $80 cost and $100 price, profit is $20, margin is 20%, and markup is 25%. Mixing them up is one of the most common pricing mistakes in small business.

Frequently asked questions

What is the difference between margin and markup?

Margin is profit as a percentage of the selling price, while markup is profit as a percentage of the cost. The same sale can have a 20% margin and a 25% markup — they are calculated on different bases.

How do you calculate profit margin?

Subtract cost from selling price to get profit, then divide profit by the selling price and multiply by 100. For example, a $80 cost and $100 price gives $20 profit and a 20% margin.

What is a good profit margin?

It depends on the industry. Grocery stores run on thin single-digit margins, while software and services often see 20–40% or more. Compare against businesses like yours, not a universal number.

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