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Profit Margin Calculator Calculate Your Business Profit

Calculate profit, loss, profit margin, markup, and target selling prices instantly. Enter your cost and selling price to understand your business profitability.

Profit & Loss Margin & Markup Target Pricing
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Profit Margin Calculator

Calculate your business profitability

0 calculations
$

Your total cost to purchase or produce the item.

$

The amount you charge your customer.

Quick Examples

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What Is a Profit Margin Calculator?

A profit margin calculator helps you determine how much profit you make from a product or service based on its cost price and selling price. It calculates the profit amount, profit margin, markup percentage, and other useful pricing measurements.

This calculator can be useful for business owners, retailers, freelancers, online sellers, wholesalers, and anyone who needs to compare costs with selling prices when planning prices.

How to Calculate Profit Margin

01

Enter cost price

Enter the total amount you paid to purchase or produce the product or service.

02

Enter selling price

Enter the amount you charge your customer for the product or service.

03

Analyze your margin

Review your profit, margin, markup, and target selling prices instantly.

Profit Margin Calculator Features

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Profit & Loss

Determine whether your selling price produces a profit or loss.

M

Profit Margin

Calculate profit margin based on your selling price.

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Markup Calculator

See profit as a percentage of your original cost.

$

Target Margins

Calculate selling prices needed to reach target margins.

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Detailed Calculation

Review the calculation steps and formulas behind your result.

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Copy & Download

Copy or download your complete profit analysis.

Who Can Use This Calculator?

Small Businesses

Estimate product profitability and compare pricing options.

Online Sellers

Check margins when setting prices for online products.

Retailers

Compare cost, selling price, markup, and expected profit.

Freelancers

Analyze pricing and profitability for services and projects.

Frequently Asked Questions

What is profit margin?

Profit margin is the percentage of selling revenue that remains as profit after subtracting the cost. It is calculated by dividing profit by selling price and multiplying by 100.

What is the difference between margin and markup?

Profit margin measures profit against the selling price, while markup measures profit against the cost price.

How is profit calculated?

Profit is calculated by subtracting the cost price from the selling price.

What happens if the selling price is lower than the cost?

The transaction produces a loss. The calculator displays the loss amount and the corresponding negative margin.

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

Use the formula: Selling Price = Cost Price ÷ (1 − Target Profit Margin). For example, a target margin of 20% means the target margin is represented as 0.20 in the formula.

Important Information

The results provided by this calculator are mathematical estimates based on the values you enter. Actual business profitability can also depend on operating expenses, taxes, shipping costs, transaction fees, discounts, returns, advertising costs, and other business expenses.

Use the results as a planning reference and verify important business decisions using your complete financial records.

This calculator provides mathematical estimates for informational purposes only. It does not provide financial, accounting, tax, or investment advice.