luckpandaHow to use the profit margin calculator
- Choose whether to find the margin or the price.
- Pick the currency and enter the cost.
- Enter the selling price, or the target margin.
- Read the profit, margin and markup.
Margin and markup formulas
Profit = price − cost. Margin = profit ÷ price × 100. Markup = profit ÷ cost × 100. Price from a target margin = cost ÷ (1 − margin ÷ 100). Price from a markup = cost × (1 + markup ÷ 100).
| Cost | Price | Profit | Margin | Markup |
|---|---|---|---|---|
| $60 | $100 | $40 | 40% | 66.67% |
| $75 | $100 | $25 | 25% | 33.33% |
| $40 | $100 | $60 | 60% | 150% |
| $80 | $100 | $20 | 20% | 25% |
Gross, operating and net margin
This calculator gives the margin on a sale, which is a gross margin. Use the gross margin calculator for a whole period's revenue and cost of goods sold.
- Gross margin uses only the direct cost of what you sold (cost of goods sold).
- Operating margin also takes off running costs: rent, salaries, software, marketing.
- Net margin is what is left after everything, including interest and tax.