Revenue
£70.00
Profit Margin Calculator
Pricing calculator with Basic, Advanced, and Target Price modes.
Calculate margin, markup, net profit, break-even volume, and required price for your target margin.
Basic mode is quick pricing. Advanced mode includes fees, tax, overheads, and break-even. Target mode solves required selling price from desired margin.
Share options
Outputs
Live pricing results
Total cost
£40.00
Gross profit
£30.00
Profit per unit
£30.00
Profit margin
42.86%
Markup
75.00%
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What this calculator does
The Profit Margin Calculator helps you measure how much profit you keep from each sale and what percentage of your selling price that profit represents. It is useful for business owners, freelancers, ecommerce sellers, and teams setting pricing strategy.
- Cost
- Selling price
- Profit amount
- Profit margin percentage
Core formula
Profit = Selling Price - Cost
Profit Margin % = (Profit / Selling Price) × 100
Margin is calculated from the selling price, not the cost.
How to calculate profit margin
- Enter the cost of the product or service.
- Enter the selling price.
- Subtract cost from selling price to get profit.
- Divide profit by selling price.
- Multiply by 100 to get margin percentage.
Example
If Cost = £40 and Selling Price = £70:
- Profit = £70 - £40 = £30
- Profit Margin = (30 / 70) × 100 = 42.86%
So the sale has a 42.86% profit margin.
Margin vs markup
Many people confuse margin and markup.
- Profit Margin = Profit / Selling Price
- Markup = Profit / Cost
Example with Cost = £50 and Selling Price = £80:
- Profit = £30
- Margin = 30 / 80 = 37.5%
- Markup = 30 / 50 = 60%
Why this tool is useful
- Set better prices
- Check if a product is profitable
- Compare margins across products
- Plan discounts more carefully
- Understand the difference between profit and revenue
- Avoid confusion between margin and markup
FAQs
Quick answers
What does this calculator show?
It shows cost, selling price, profit amount, profit margin percentage, and markup percentage for the same inputs.
How is profit margin calculated?
Profit margin uses selling price as the base: (Profit ÷ Selling Price) × 100.
What is the difference between margin and markup?
Margin uses selling price as the denominator, while markup uses cost. The percentages are different for the same sale.
Can this be used for products and services?
Yes. Any scenario with a cost and a selling price can use the same formulas.
Is this financial advice?
No. This is an educational pricing calculator and not financial, tax, or legal advice.
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