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Profit Margin Calculator

Work out your margin from a cost and a price — or the price you need to hit a target margin. Markup is shown alongside, because they are not the same number.

What you know

Margin

33.33%

Cost
$100.00
Selling price
$150.00
Profit
$50.00
Markup
50%

A worked example

Something costs you $100 and you sell it for $150. The profit is $50 either way — but expressed against the price it is a 33.33% margin, and against the cost it is a 50% markup.

Cost$100.00
Price$150.00
Margin / markup33.33% / 50%

To convert: margin = markup ÷ (1 + markup). To go the other way, markup = margin ÷ (1 − margin).

Common questions

What is a good profit margin?
It depends entirely on the trade. Grocery retail runs on single digits and survives on volume; software and consultancy often clear 70% or more. Compare yourself with your own sector rather than with an average.
How do I calculate margin?
Subtract the cost from the price, then divide by the price and multiply by 100. On a $150 sale of something that cost $100: 50 ÷ 150 = 33.33%.
Can a margin be more than 100%?
No. Margin is a share of the selling price, so it approaches 100% only as cost approaches zero and can never exceed it. Markup has no such ceiling — a 300% markup is perfectly ordinary.
Is this gross or net margin?
Gross. It counts the direct cost of the thing sold. Net margin also takes off overheads, wages, rent and tax, and is always lower.