How to use the profit margin calculator
- Pick a mode: price from cost + target margin, or margin from price and cost.
- Read selling price, profit, margin, and (in the second mode) equivalent markup.
- Compare with the markup calculator—40% markup ≠ 40% margin on the same deal.
- Copy link to share pricing assumptions with a partner or bookkeeper.
Formulas
Margin = profit ÷ price. With cost C and target margin m (decimal), price P = C ÷ (1 − m). Example: cost 50, 30% margin → price ≈ 71.43, profit ≈ 21.43.
Retail and small business
Marketplace fees and shipping belong in cost if you want true margin. For fixed-cost volume, follow with the break-even calculator. After a discount, re-check margin using the discount calculator sale price.
Frequently asked questions
How is profit margin defined here?
Margin = (price − cost) ÷ price × 100%. “Price from cost” mode solves the selling price for a target margin.
Markup or margin calculator?
Use markup if you think cost-plus; use this page if you think “what percent of price is profit.”
Can margin be 100%?
Target margin must stay below 100%. At 0 cost, use “margin from price & cost” mode instead.
Should I include marketplace fees in cost?
If fees are a percent of price, many sellers bump effective cost. This tool does not auto-deduct fees—adjust cost yourself.
Can I share this scenario with someone?
Yes. Copy link below the form keeps your current inputs so you can share the scenario or save it for later.
How does this tie to break-even?
After price and unit cost, use the break-even calculator for volume to cover fixed costs.
Multiple products?
One scenario per SKU—use copy link to save each pricing scenario.