Profit margin & markup calculator
Margin and markup in both directions.
FreeRuns in your browserNo signupUpdated 2026-10-29
Margin is profit divided by price. Markup is profit divided by cost. A 50% markup is a 33.3% margin.
Selling price
$65
Cost $40
Profit per unit
$25
Margin
38.5%
Share of the selling price
Markup
62.5%
Share of the cost
Quick reference at this cost
| Margin | Markup | Price | Profit |
|---|---|---|---|
| 10% | 11.1% | $44.44 | $4.44 |
| 20% | 25.0% | $50 | $10 |
| 25% | 33.3% | $53.33 | $13.33 |
| 30% | 42.9% | $57.14 | $17.14 |
| 40% | 66.7% | $66.67 | $26.67 |
| 50% | 100.0% | $80 | $40 |
| 60% | 150.0% | $100 | $60 |
Summary
Cost: $40 Selling price: $65 Profit per unit: $25 Margin: 38.5% Markup: 62.5%
About this tool
How it works and how to read the result.
Need this done for you?
E-commerce development
Online stores on Shopify, WooCommerce or a custom stack.
See the serviceWhat it does
A profit margin calculator turns two numbers you know into the two you need. Enter a cost and a selling price and it shows the profit per unit, the margin and the markup. Or start from the cost and a target margin or markup, and it works out the price. The quick reference table shows what the price would be at common margins for the same cost, which helps when you are comparing price points. Everything runs in the browser and nothing is stored.
How to use it
- Pick what you know: cost and price, cost and a target margin, or cost and a target markup.
- Enter the cost per unit. Include packaging, shipping you cover, and payment fees if you want the true figure.
- Enter the price or the target percentage.
- Read the four stats on the right, and use the table to compare nearby price points.
- Copy the summary into a quote, a spreadsheet or a message to a supplier.
How to read the result
Take a product that costs 40 to make and sells for 65. Profit per unit is 25. Margin is 25 divided by 65, which is 38.5%. Markup is 25 divided by 40, which is 62.5%. Both describe the same sale; they just use a different base.
The quick reference table at the same cost shows that a 50% margin needs a price of 80, while a 30% margin needs 57.14. That is the range you are working in. If competitors sit around 60, a 33% margin is what the market allows, and you can decide whether that covers your fixed costs.
A red badge means the price is below cost, so every sale loses money. A margin of 100% or more is not possible, because it would need an infinite price, so the calculator caps it at 99.9%.
If you are building an online store and want pricing rules, bundles and discounts handled in the product data rather than by hand, see our ecommerce development service. To check how a sale price affects the same figures, try the discount calculator.
Questions
Frequently asked.
What is the difference between margin and markup?
Margin is profit as a share of the selling price. Markup is profit as a share of the cost. The same sale has a higher markup than margin, because cost is the smaller number. A 50% markup is a 33.3% margin. Pricing tools and accountants usually mean margin; suppliers often quote markup.
What is a good profit margin for an online store?
It depends on the category. Physical goods often run 20% to 40% gross margin before marketing and shipping. Digital products and services can be far higher. Work out your fixed costs per month, divide by the units you expect to sell, and make sure the margin covers that with room to spare.
Should I include shipping and payment fees in the cost?
Yes, if you want the real margin. Add packaging, shipping you absorb, and the payment gateway fee to the cost per unit. A 2.9% card fee on a low-margin product can turn a small profit into a loss, so it is worth including before you set a price.
Your next move
Like what you see? Tell us about it.
A process that takes too long, a website that undersells you, or an idea ready to take shape. Tell us where you are and we will suggest a useful next step.
India · Working with clients worldwide