How do I calculate profit margin?

Margin = (price − cost) ÷ price × 100. Selling at 65 something that costs 40 gives 25 profit and a 38.5% margin.

How do I calculate markup?

Markup = (price − cost) ÷ cost × 100. The same item has a 62.5% markup.

What price gives me a 30% margin?

Price = cost ÷ (1 − 0.30). For a cost of 40 that is 57.14. With fees, the calculator also covers the fee percentage and any fixed fee per sale.

What is a good profit margin?

It depends on the trade: grocery can run on a few percent, while services and software often keep 50% or more. Compare with your own costs, including your time.

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Price for the margin you actually want

Enter your cost and your price, a target margin or a markup. Add card or marketplace fees and see the real profit on every sale.

You get

Price, profit, margin and markup, the effect of fees, and a price for every common margin.

Billing a customer? Use the invoice generator.

Cost per item ($)What you pay to make or buy one, incl. shipping in.Selling price ($)

Card or marketplace fees (optional)

Fee % of the pricee.g. 2.9 for a card, 15 for a marketplaceFixed fee per sale ($)e.g. 0.30

How many you sell a month (optional)

Result

Selling price: $65.00
Profit per sale: $25.00
Margin: 38.5%
Markup: 62.5%

Price for each margin

Margin	Price	Markup
10%	$44.44	11.1%
20%	$50.00	25.0%
25%	$53.33	33.3%
30%	$57.14	42.9%
40%	$66.67	66.7%
50%	$80.00	100.0%
60%	$100.00	150.0%

Margin is profit divided by the price; markup is profit divided by the cost. A 50% markup is only a 33% margin. Taxes like VAT or GST are left out: enter prices without them.

Margin vs markup

A 50% markup is only a 33% margin. Mixing them up is how prices end up too low.

Markup is what you add on top of the cost. Margin is the share of the price you keep. Fees come out of the price, so a 15% marketplace fee can take half of a thin margin.

How do I calculate profit margin?: Margin = (price − cost) ÷ price × 100. Selling at 65 something that costs 40 gives 25 profit and a 38.5% margin.
How do I calculate markup?: Markup = (price − cost) ÷ cost × 100. The same item has a 62.5% markup.
What price gives me a 30% margin?: Price = cost ÷ (1 − 0.30). For a cost of 40 that is 57.14. With fees, the calculator also covers the fee percentage and any fixed fee per sale.
What is a good profit margin?: It depends on the trade: grocery can run on a few percent, while services and software often keep 50% or more. Compare with your own costs, including your time.
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