How to use the Profit Margin Calculator
- 1
Enter what the product or job costs you.
- 2
Enter your selling price to see margin and markup.
- 3
Or set a target margin to get the price you should charge.
Margin vs. markup
Margin is profit as a share of the selling price. Markup is profit as a share of cost. A product that costs $60 and sells for $100 has a 40% margin but a 66.7% markup. Mixing them up is one of the most common pricing mistakes.
Why it matters for marketing
Your margin sets how much you can spend to win a sale. It's the number behind break-even ROAS, max cost per lead and how far discounts can go.
- Break-even ROAS = 1 ÷ margin
- Max cost per order = order value × margin
- A 20% discount on a 40% margin halves your profit
Frequently asked questions
What's the difference between margin and markup?
Margin divides profit by price; markup divides profit by cost. Margin is always the smaller number.
What is a good profit margin?
It varies by industry. Many retailers work on 25% to 50% gross margin; services are often higher.
How do I find the price for a target margin?
Price = cost ÷ (1 − target margin). For a $60 cost and 40% margin, that's $100.
Is my data stored?
No. Everything is calculated in your browser.