Profit Margin Calculator
Profit Margin Calculator Free Online Tool
Our profit margin calculator free online tool shows your profit, margin percentage and markup in seconds. Enter your cost and selling price (or your revenue and expenses), and the results update as you type. There is nothing to install and no sign-up, and everything runs directly in your browser.
Free Online Profit Margin Calculator for Any Business
This free online profit margin calculator works for shops, freelancers, online sellers, restaurants and service businesses. Use it to check the margin on a single product, a full order or your whole month. If you sell online and want customers to reach your store quickly, create a scannable link with our QR Code Generator.
Margin Calculator Formula
The margin calculator formula is simple: Margin % = (Selling Price − Cost) ÷ Selling Price × 100. The result tells you how many cents of every dollar of sales you keep as profit. For example, if an item costs $60 and sells for $100, the profit is $40 and the margin is 40%. This calculator applies the same formula automatically, so you only need to enter two numbers.
How to Calculate Net Profit Margin
If you are asking how to calculate net profit margin, use this formula: Net Profit Margin % = Net Profit ÷ Revenue × 100. Net profit is your revenue minus every cost: product cost, rent, salaries, marketing, interest and taxes. Say your business earns $50,000 in revenue and spends $42,500 in total. Net profit is $7,500, so the net profit margin is 15%. This number shows how much of your sales is truly left after all expenses.
Gross Profit Margin Calculator Formula
The gross profit margin calculator formula only looks at the direct cost of what you sell: Gross Margin % = (Revenue − Cost of Goods Sold) ÷ Revenue × 100. With $80,000 in revenue and $48,000 in cost of goods sold, gross profit is $32,000 and gross margin is 40%. Gross margin ignores overhead such as rent and wages, which makes it ideal for comparing products and checking your pricing.
How to Calculate Margin and Markup
Many people mix up the two, so here is how to calculate margin and markup side by side. Markup is based on cost: Markup % = (Price − Cost) ÷ Cost × 100. Margin is based on the selling price. With a cost of $60 and a price of $100, the markup is 66.7% while the margin is 40%. Markup is always higher than margin for the same sale. A quick conversion helps: a 50% markup equals a 33.3% margin.
Calculate Selling Price from Cost and Profit Margin
To calculate selling price from cost and profit margin, use Selling Price = Cost ÷ (1 − Margin), where the margin is written as a decimal. If your cost is $60 and you want a 40% margin, the price is $60 ÷ 0.60 = $100. Do not simply add 40% to the cost, because that gives a $84 price and only a 28.6% margin. Use the calculator's price mode to avoid this common pricing mistake.
Profit = Price - Cost
Margin % = Profit / Price x 100
Markup % = Profit / Cost x 100
Price = Cost / (1 - Margin)
Easy Profit Margin Calculator: How to Use It
This easy profit margin calculator takes only a few steps:
- Enter your Cost (what the item or service costs you).
- Enter your Selling Price, or type the margin you want to find a price.
- Add any extra costs such as shipping, fees or packaging.
- Read your profit, margin % and markup % instantly.
- Press Copy Results to save the numbers in your notes or spreadsheet.
Quick Pricing Tools for Sellers and Creators
Pricing is only one part of running an online business. Protect your accounts with the Random Password Generator, give your store a branded tab icon with the Favicon Generator, and pick matching brand colors with the Color Palette Generator. Developers tracking orders or records can also use the UUID Generator to create unique IDs.
Tips for healthier margins
- Track gross margin per product, not just for the whole business.
- Include shipping, payment fees and packaging in your cost.
- Review supplier prices every few months.
- Test small price increases on your best sellers.
- Compare your margin with typical numbers for your industry.
Frequently asked questions
Is this profit margin calculator really free? Yes. It is free, requires no registration, and has no usage limits.
Is my data uploaded anywhere? No. The numbers you enter stay in your browser.
What is the difference between margin and markup? Margin is profit as a percentage of the selling price, while markup is profit as a percentage of cost.
What is a good profit margin? It varies by industry. Many small businesses aim for a net margin of 10% or more, but retail, services and software can differ widely.
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