Profit Margin Calculator - Margin, Markup & Selling Price
Find your gross margin and markup from cost and price, or work backwards to the price you need to hit a target margin — with a margin-to-markup conversion table.
Margin vs markup quick reference
| Margin | Equivalent markup | Price when cost = 100 |
|---|---|---|
| 10% | 11.1% | SAR 111.11 |
| 20% | 25.0% | SAR 125.00 |
| 25% | 33.3% | SAR 133.33 |
| 30% | 42.9% | SAR 142.86 |
| 40% | 66.7% | SAR 166.67 |
| 50% | 100.0% | SAR 200.00 |
| 60% | 150.0% | SAR 250.00 |
| 70% | 233.3% | SAR 333.33 |
What is a Profit Margin Calculator?
A profit margin calculator turns cost and price into the three numbers that drive pricing decisions: profit per unit, margin as a share of revenue, and markup as a share of cost. It also runs in reverse — give it a cost and a target margin, and it returns the price you need to charge. That reverse calculation is the one most businesses actually need, and the one most often got wrong.
Margin vs Markup: The Expensive Confusion
Margin and markup describe the same profit against different denominators. Buy at 60, sell at 100: profit is 40. As a share of the selling price that is a 40% margin. As a share of the cost it is a 66.7% markup. Both are correct — but if you apply a 40% markup when you meant a 40% margin, you charge 84 instead of 100 and quietly lose 16 per unit.
Margin % = (Price − Cost) ÷ Price × 100
Markup % = (Price − Cost) ÷ Cost × 100
Price from margin = Cost ÷ (1 − Margin ÷ 100)
Price from markup = Cost × (1 + Markup ÷ 100)
- Gross margin and markup calculated together, so you can never confuse them
- Reverse pricing from a target margin
- Markup pricing for cost-plus businesses
- Quantity support for total revenue, cost and profit
- A margin-to-markup conversion table for quick reference
- 20 currencies supported
Common Profit Margin Use Cases
Product Pricing
Set a price that actually delivers your target margin.
E-commerce
Check margins after product cost, shipping and fees.
Wholesale
Build a price ladder from wholesale to retail.
Quotes & Tenders
Check that a bid still clears your minimum margin.
Food & Beverage
Price menu items from recipe cost.
Margin Reviews
Spot the products quietly dragging profitability down.
How to Use the Calculator
- Pick a mode: margin from cost and price, price from a target margin, or price from a markup.
- Enter your unit cost.
- Enter the selling price, target margin or markup depending on the mode.
- Add a quantity to see totals for a batch or a period.
- Read the margin, markup and profit figures together.
Gross, Operating and Net Margin
This calculator computes gross margin — revenue minus the direct cost of goods. Two more layers sit beneath it, and mistaking one for another is how a business can appear profitable while losing money:
- Gross margin — after direct product or service costs only.
- Operating margin — also after rent, salaries, marketing and other operating expenses.
- Net margin — after everything, including financing costs and tax. This is the number that reaches the owner.
A healthy gross margin has to be big enough to cover all the layers below it. That is why retailers running on 5% gross margins need enormous volume, while consultancies on 70% can be profitable with a handful of clients.
Why Margin Can Never Reach 100%
A 100% margin would require a zero cost. As your target margin approaches 100%, the price required approaches infinity — the calculator caps the input just short of it for that reason. Markup has no such ceiling: a 900% markup is perfectly possible and equals a 90% margin. If someone quotes a "200% margin", they mean markup.
Who This Calculator Is For
- Retail and e-commerce sellers setting prices
- Wholesalers and distributors building price ladders
- Restaurant and café owners costing menus
- Freelancers and agencies pricing project work
- Sales teams checking deal profitability
- Accountants and analysts reviewing product margins
❓ Frequently Asked Questions
What is gross profit margin?
Gross profit margin is profit as a percentage of the selling price: (Price − Cost) ÷ Price × 100. If you buy at 60 and sell at 100, your margin is 40%.
What is the difference between margin and markup?
Margin measures profit against the selling price; markup measures the same profit against the cost. Buying at 60 and selling at 100 is a 40% margin but a 66.7% markup.
How do I set a price for a target margin?
Divide the cost by (1 − target margin ÷ 100). To make a 40% margin on a cost of 60, price at 60 ÷ 0.6 = 100.
Why can't a margin reach 100%?
A 100% margin would mean the cost is zero. As the target margin approaches 100%, the required price rises towards infinity — markup, by contrast, has no upper limit.
Which should I use to price products?
Price with markup for speed, but monitor margin for profitability. Margin is the figure that ties directly to your income statement and is comparable across products.
Is gross margin the same as net margin?
No. Gross margin only subtracts the direct cost of goods. Net margin also subtracts rent, salaries, marketing, financing and tax.
Does the calculator handle quantities?
Yes. Enter units sold to see total revenue, total cost of goods and total gross profit alongside the per-unit figures.
What is a good profit margin?
It varies widely: grocery retail often runs on single-digit margins, while software and consulting can exceed 70%. Compare against your own industry benchmark.
How do I convert markup to margin?
Margin = Markup ÷ (100 + Markup) × 100. A 50% markup is a 33.3% margin. The reference table in the tool shows common conversions both ways.
Is my pricing data private?
Yes. Everything is calculated in your browser and no figures leave your device.