How to use Profit Margin Calculator
- Choose whether to check profit, find a selling price, or find an allowable cost.
- Enter the requested amounts or target margin percentage.
- Review profit, margin, and markup as the result updates.
A closer look
Profit is selling price minus cost. Margin is profit divided by selling price, while markup is profit divided by cost. A cost of 60 and a selling price of 100 gives profit of 40, margin of 40%, and markup of 66.67%. To price an item for a target margin, selling price = cost ÷ (1 − margin/100). To find the cost allowed by a price and margin, cost = price × (1 − margin/100).
A practical example
At a cost of 60 and selling price of 100, profit is 40. Margin is 40% of the selling price, while markup is about 66.67% of the cost.
A useful tip
Include the costs relevant to your question. An item-level calculation is not automatically net business profit; overheads, taxes, returns, and other expenses may still apply.
Good questions. Simple answers.
Can it show a loss?
Yes. In Check profit mode, a selling price below cost gives negative profit, margin, and markup.
What happens if cost or selling price is zero?
A percentage with a zero denominator is shown as Not defined, not as an invalid number. A zero cost cannot determine a unique price for a target margin below 100%.
Explore all calculators for related tasks and category-specific guidance, or read how Toolzafi handles your data.