---
title: "Profit Margin Calculator: Margin, Markup and Price"
canonical: https://luckpanda.app/tools/profit-margin-calculator
language: en
updated: 2026-10-09
content: baseline
---

# Profit margin calculator

**Profit margin calculator: how it works** Margin = (selling price − cost) ÷ selling price × 100. Selling at $100 something that costs $60 gives $40 profit and a 40% margin.

Free online tool: https://luckpanda.app/tools/profit-margin-calculator (create on screen, no account needed).

## 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% |

## How to use the profit margin calculator

1. Choose whether to find the margin or the price.
2. Pick the currency and enter the cost.
3. Enter the selling price, or the target margin.
4. Read the profit, margin and markup.

## 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.

## Questions people ask

### How do I calculate profit margin?

Margin = (selling price − cost) ÷ selling price × 100. Selling at $100 something that costs $60 gives $40 profit and a 40% margin.

### How do I price for a target margin?

Price = cost ÷ (1 − margin ÷ 100). For a 40% margin on a $60 cost: $60 ÷ 0.6 = $100. Adding 40% to cost ($84) gives only a 28.6% margin.

### What is the difference between margin and markup?

Both use the same profit. Margin divides it by the selling price; markup divides it by the cost. $40 profit on a $100 price and $60 cost is a 40% margin and a 66.7% markup.

### Can a margin be more than 100%?

No. Margin is a share of the selling price, so it is always below 100%. Markup can be any size: a 300% markup is a 75% margin.

### What is a good profit margin?

It depends on the trade. Grocery retail runs on low single-digit net margins; software and services often have gross margins above 70%. Compare yourself with businesses like yours, and look at gross and net margin separately.