Profit Margin Calculator

A profit margin calculator converts a unit cost and selling price into the three figures every pricing decision needs: profit margin (profit as a share of price), markup (profit as a percentage of cost), and absolute profit per unit.

Small-business owners setting prices, freelancers quoting project rates, e-commerce sellers checking marketplace fees against margin targets, and students learning the difference between margin and markup.

A product costing $40 that sells for $100 earns $60 per unit - a 60% margin or a 150% markup. Work backwards too: if you need a 40% margin and your cost is $30, the price must be $50. Compare margins across products to see which ones actually fund the business.

Profit = price - cost. Margin = profit / price x 100. Markup = profit / cost x 100. Include every per-unit cost in the cost figure - materials, packaging, fees, and shipping - or the margin will look healthier than it is.

The classic error is confusing margin with markup: a 50% markup on cost is only a 33.3% margin. This tool computes per-unit figures only; it does not model volume, fixed overhead, taxes, or discounts, which also affect real profitability.

Benchmark gross margin against wholesale markup in real time. Our profit calculator helps e-commerce sellers, consultants, and retailers determine optimal unit pricing privately without sending catalog rates to external servers.