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Profit margin
calculator

Enter your cost and selling price to get profit, margin and markup instantly — or work back the price for the margin you want. No sign-up, works in any currency.

Enter your numbers

$
$
Price for a target margin

Want a specific margin on this item? We'll work back the price to charge.

%
→ charge$166.67
Profit per unit$50.00
Profit margin33.3%
Markup50.0%

Stop calculating margins by hand. Storefronts tracks cost, price and margin on every product automatically — and flags items selling below target.

Start freeSee pricing

How to calculate profit margin

Your profit marginis how much of each sale you actually keep, after the cost of the item. It's the single clearest signal of whether a product is worth stocking. The formula is short:

margin % = (selling price − cost) ÷ selling price × 100

Say an item costs you 100 and you sell it for 150. Your profit is 50, and your margin is 50 ÷ 150 = 33.3%. The same 50 profit expressed against your cost is a 50% markup — the number suppliers often quote. Mixing the two up is one of the most common ways small businesses quietly underprice themselves.

Margin vs markup at a glance

MarkupMargin
25%20%
50%33.3%
100%50%
150%60%

From one calculation to your whole catalogue

A calculator is great for a single product. But once you're stocking dozens or hundreds of items — with supplier costs that change, promotions, and multiple locations — checking margins by hand stops scaling. Storefronts keeps cost, price and margin on every product up to date automatically, and flags anything selling below the margin you set.

FAQ

Profit margin calculator — FAQ

The questions owners ask when they're pricing products.

How do you calculate profit margin?

Profit margin is your profit divided by the selling price, as a percentage. The formula is: margin % = (selling price − cost) ÷ selling price × 100. For example, an item that costs 100 and sells for 150 makes 50 profit, which is a 33.3% margin.

What's the difference between margin and markup?

Both measure profit, but against different bases. Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. The same 50 profit on a 100 cost item is a 33.3% margin but a 50% markup — which is why confusing the two leads to underpricing.

What price should I charge for a target margin?

Work back from the margin you want: price = cost ÷ (1 − target margin %). To make 40% margin on an item costing 100, charge 100 ÷ (1 − 0.40) = 166.67. The calculator above does this for you in the “price for a target margin” box.

Is this profit margin calculator free?

Yes — it's completely free, runs in your browser, and nothing you type is sent anywhere. Use it as often as you like. If you'd rather not calculate margins by hand for every product, Storefronts tracks cost, price and margin automatically across your whole catalogue.

Does the calculator work in my currency?

Yes. Cost and price are entered in the same currency, so the result is correct in any currency — pick yours from the selector (USD, EUR, GBP, KES, INR, NGN, ZAR and more) and the symbol updates throughout.

Track every margin without the math

Storefronts is operations software for retail, hospitality and everything in between. Cost, price and margin live on every product — automatically. Start on the Demo plan, no card required.

Start freeSee pricing