Profit Margin Calculator

Profit margin is the percentage of profit relative to the selling price, while markup is the percentage of profit relative to the cost price. For example, if you buy an item for $100 and sell it for $150, your profit is $50. The markup is 50% ($50/$100), but the profit margin is 33.33% ($50/$150). Margin is always lower than markup for the same profit amount.

To calculate profit margin percentage: subtract your cost price from your selling price to get the profit, then divide the profit by the selling price and multiply by 100. Formula: Profit Margin % = [(Selling Price - Cost Price) / Selling Price] × 100. Use the calculator above for instant results.

A good profit margin varies by industry. Generally, a 10% net profit margin is average, 20% is considered good, and 5% or less is low. Retail typically operates on 2-5% margins, while professional services can achieve 15-40%. Use this calculator to analyze your pricing and ensure your margins support sustainable growth.

Markup directly determines your selling price based on cost. If you have a $100 cost and apply a 50% markup, you add $50 to get a $150 selling price. The calculator shows you how different markup percentages translate to profit margins, helping you price competitively while maintaining profitability.

Dewx is an all-in-one business operating system that goes beyond simple calculators. It integrates your CRM, invoicing, expense tracking, and financial analytics in one platform. Track profit margins across deals, automate invoicing, and get AI-powered insights on pricing strategies. Join the beta to transform how you manage your business.