Free business calculator

Margin Calculator

Calculate profit margin, markup, selling price, and break-even point. Enter your numbers and get an instant answer with the formula shown.

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  • Results update instantly

Quick example

$1,000 revenue $600 cost
40% profit margin

$400 profit, 66.67% markup

Choose what you want to calculate

Margin and pricing calculator

Profit margin

Find margin from revenue and cost

Use total sales revenue and the cost required to produce those sales.

Your result

40.00%Profit margin
Profit
$400.00
Markup
66.67%
Cost
Profit

($1,000 - $600) / $1,000 x 100 = 40%

Calculations happen on your device. Values are not submitted or stored.

The math behind the answer

Margin calculator formulas

Margin and markup both describe profit, but they use different starting values. Use the formula that matches the decision you need to make.

01

Profit margin

Use this to find the percentage of revenue left after cost.

(Revenue - Cost) / Revenue x 100

02

Markup

Use this to find how much profit was added on top of cost.

(Selling Price - Cost) / Cost x 100

03

Selling price from target margin

Convert the target margin to a decimal before using the formula.

Cost / (1 - Target Margin)

04

Break-even units

Contribution per unit is selling price minus variable cost.

Fixed Costs / Contribution per Unit

Do not mix these up

Margin vs. markup

Margin is profit divided by selling price. Markup is profit divided by cost. The same sale therefore produces two different percentages.

Example: an item costs $60 and sells for $100. The $40 profit is a 40% margin, but a 66.67% markup.

Margin and markup comparison for a $60 cost
Selling priceMarginMarkup
$75.0020.00%25.00%
$85.7130.00%42.85%
$100.0040.00%66.67%
$120.0050.00%100.00%

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Common questions

Margin calculator FAQ

How do I calculate profit margin?

Subtract total cost from revenue to get profit. Divide profit by revenue, then multiply by 100. With $1,000 revenue and $600 cost, profit is $400 and margin is 40%.

What is the difference between margin and markup?

Margin uses selling price as the base. Markup uses cost as the base. An item that costs $60 and sells for $100 has a 40% margin and a 66.67% markup.

How do I calculate a selling price from a target margin?

Divide cost by one minus the target margin written as a decimal. For a $60 cost and 40% target margin, calculate $60 / (1 - 0.40). The selling price is $100.

Can profit margin be negative?

Yes. Margin becomes negative when cost is greater than revenue. This means the sale or reporting period produced a loss.