Profit Margin Calculator
See how revenue and entered costs translate into profit, margin and markup, then find the unit price needed to reach a target margin.
Revenue and costs
Include every cost you want reflected in the result. Your entries stay in this browser.
Profit and pricing results
Margin and markup are different
Profit is revenue − entered costs. Profit margin divides that profit by revenue, while markup divides it by cost. A $30 profit on $70 of cost and $100 of revenue is a 30% margin but a 42.86% markup.
The target price uses total cost ÷ (1 − target margin), then divides by units. Tax, payment fees, returns and overhead only affect the answer when you include them in the cost fields.
Worked margin example
If revenue is $10,000 and total entered costs are $7,000, profit is $3,000 and profit margin is 30%. Markup is different: the same $3,000 profit divided by $7,000 of cost is a 42.86% markup.
Costs that belong in a pricing check
Include product or service delivery costs, payment processing, marketplace commissions, packaging, shipping subsidies, expected refunds and the share of overhead relevant to the period. Leaving out a recurring cost makes both profit and target price look better than they are.
Why a higher margin is not always better
A price increase may improve margin per sale but reduce conversion or volume. Compare the new margin with expected unit sales and contribution profit. For businesses with several products, calculate each product first and then check the weighted overall margin.
This is a planning estimate, not accounting, tax or financial advice. Confirm pricing decisions against your complete cost records and local obligations.