How to use the Profit Margin Calculator
- Choose whether you know the selling price or a target margin.
- Enter your cost and price (or margin).
- Read the profit, margin and markup.
About this tool
Margin and markup are often confused. Margin is profit as a share of the selling price; markup is profit as a share of the cost. Buying at 800 and selling at 1,000 gives a 20% margin but a 25% markup. Pricing with the right one protects your profit.
Frequently asked questions
What is a good profit margin?
It depends on the industry. Retail and mobile phone sales often run on thin margins, while services and digital products can have much higher ones.
How do I price for a 30% margin?
Divide your cost by (1 − 0.30). A cost of 700 needs a price of 1,000 for a 30% margin. Use the “target margin” mode to do this instantly.
Should I include delivery and fees in cost?
Yes. Include every cost of making one sale — product, delivery, payment fees and packaging — to see your true margin.