About the Profit Margin Calculator
Enter any two of cost, price, margin or markup and the tool solves the rest — with the crucial margin-vs-markup distinction handled correctly and explained.
Confusing margin with markup is one of the most common (and expensive) small-business pricing errors.
How to use the Profit Margin Calculator
- Enter your cost and selling price (or target margin).
- Read profit, margin % and markup %.
- Adjust price to hit a target margin.
Common uses
Pricing products profitably
Checking margins across a catalog
Setting service rates
Frequently asked questions
What is the difference between margin and markup?
Margin is profit ÷ price; markup is profit ÷ cost. A 50% markup equals a 33.3% margin — mixing them up under-prices your product.
What is a good profit margin?
Varies by industry: 5–10% for grocery retail, 50%+ for software and services. Compare within your sector.
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