◫ FINANCE Updated July 25, 2026

Profit Margin Calculator

Margin, markup, and profit from cost and price.

Cost
Selling price
Or target margin (%) — optional
0%Profit margin
—Gross profit
—Markup
—Price for target
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How it works

Profit is revenue minus cost. Margin expresses that profit as a share of the selling price, while markup expresses it as a share of the cost — which is why a 50% markup is only a 33% margin. Enter a target margin to see the price you should charge.

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Frequently asked questions

What is the difference between margin and markup?

Margin divides profit by the selling price; markup divides the same profit by the cost. A £50 item sold for £100 is a 50% margin but a 100% markup.

What is a healthy profit margin?

It depends on the sector — grocery retail runs on single digits, while software often exceeds 70%. Compare against typical margins in your own industry.

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