Profit Margin Calculator
Find out how much you really make on what you sell, or work out the price you need to hit your profit target. Simple answers, no sign-up.
Your results
Enter your numbers to see your profit.
Margin and markup: what is the difference?
These two words are often mixed up, and mixing them up is one of the most common ways small businesses underprice their products. Both describe profit as a percentage, but they measure it against different things.
A simple example
You make a bag of snacks for 2,000 and sell it for 3,000. Your profit is 3,000 − 2,000 = 1,000.
- Your margin is 1,000 ÷ 3,000 = 33.3%. Of every 3,000 customers pay you, 1,000 is profit.
- Your markup is 1,000 ÷ 2,000 = 50%. You added half of your cost on top.
If you only add a 30% markup thinking you will get a 30% margin, you will earn less than you planned. This table shows how they compare:
| If you want this margin | You need this markup |
|---|---|
| 10% | 11.1% |
| 20% | 25% |
| 25% | 33.3% |
| 30% | 42.9% |
| 40% | 66.7% |
| 50% | 100% |
Costs people forget
Your profit is only real if every cost is included. Before you trust your numbers, add:
- Packaging and labels, even small ones.
- Delivery or transport to get goods to you or to the customer.
- Payment fees charged by banks, cards or payment apps.
- Waste and returns, such as spoiled stock or refunds.
- Your own time. If you pay yourself nothing, your real margin is lower than it looks.
Use the "Other costs" box to include these, so the calculator works from your true cost per item.
How to choose your price
Start from the margin you need. Switch to "Find my price" above, enter your costs and a target margin, and the calculator gives you the lowest price that reaches it. Then compare that price with what similar businesses charge, and with what your customers are willing to pay. If the price you need is higher than the market allows, look for ways to lower your costs rather than cutting your margin.
Frequently asked questions
What is a good profit margin?
It depends on the business. Many small shops and food sellers aim for roughly 20% to 40%, but it varies by industry, so compare with similar businesses near you. The most important thing is that your margin covers all your costs and pays you for your time.
Can margin be higher than 100%?
No. Margin is a share of the selling price, so it can never reach 100%. Markup can be over 100%, for example when you sell something for triple its cost.
Is this calculator free?
Yes, it is free with no sign-up, and your numbers are not stored or sent to us.
Does it work in any currency?
Yes. Pick your currency symbol from the list. The maths is the same in any currency.