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Profit Margin Calculator

Calculate gross margin percentage, selling price, and markup

Currency:

Pricing Model Parameters

Target Profit Margin (%)40%
Recommended Selling Price
$83.33
Profit Per Unit: $33.33
Profit Margin
40%
Profit / Selling Price
Cost Markup
66.66%
Profit / Cost Price

About Profit Margin Calculator

Convert cost price and desired profit margin into recommended retail selling prices. Understand the mathematical relationship between Profit Margin and Markup.

Key Capabilities & Features

  • Solves for recommended selling price from unit cost and desired margin %
  • Bi-directional margin % ↔ markup % conversion
  • Calculates exact gross profit dollar amount per unit
  • Visual explanation of margin vs markup formulas

How to Use Profit Margin Calculator

1

Enter Unit Cost

Input how much it costs to produce or acquire the item.

2

Set Target Margin

Enter your desired profit margin percentage.

3

View Price

Get the exact selling price needed to hit your target margin.

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Frequently Asked Questions

Why is markup higher than margin?

Markup is profit divided by cost price, whereas margin is profit divided by selling price. Because cost is lower than selling price, markup percentage is always higher than margin percentage.