Margin Calculator

Enter what something costs you and what you sell it for to see profit, margin and markup side by side. Switch modes to work out gross margin for a whole period from revenue and cost of goods sold, or to find the selling price that hits a target margin or markup. Everything runs in your browser. Nothing you type is sent to We.Inc or anyone else.

How it works

  1. Pick a mode. Cost and price gives you profit, margin and markup for one product. Gross margin works on totals for a month or a year. Price for a target solves backwards from the margin or markup you want.
  2. Type your numbers. Costs and prices take dollars and cents; percentages take plain numbers like 40. Anything that is not a valid number is flagged next to the field.
  3. Read the results. Margin is profit divided by the selling price. Markup is profit divided by the cost. The same sale always has a lower margin than markup.
  4. In target mode, choose whether your target is a margin or a markup. The tool shows the price, the profit per unit and the other percentage, so you can see both views of the same price.
  5. Use the table of common margins to see how much markup each margin needs, or open the markup calculator to price a whole product list at once.

Worked example: pricing a candle

A candle costs $6.40 in wax, wick and jar, plus $0.90 for the box and label, so $7.30 in total. You want a 60% gross margin. The price is 7.30 divided by 0.40, which is $18.25. Rounded up to $18.99 the margin is 61.6% and the markup is 160%.

If you had added 60% to the cost instead, you would have charged $11.68, a margin of only 37.5%. That gap is why this calculator shows both numbers for every price.

Worked example: a month of gross margin

A small shop sells $12,400 of goods in a month. The stock it sold cost $7,150 and card fees came to $390. Counting the fees as part of the cost of each sale, cost of goods is $7,540 and gross profit is $4,860, a gross margin of 39.2%.

Rent, software and advertising are not in that number. They are paid out of the $4,860, which is why a healthy gross margin matters: it is what covers everything else.

Tips

Frequently asked questions

How do I calculate profit margin?

Subtract the cost from the selling price to get profit, then divide the profit by the selling price and multiply by 100. A product that costs $30 and sells for $50 makes $20 profit, which is a 40% margin.

What is the difference between margin and markup?

Both use the same profit figure. Margin divides it by the selling price; markup divides it by the cost. For a $30 cost and $50 price, margin is 40% and markup is 66.7%. Margin tells you how much of each sale you keep; markup tells you how much you added on top of cost.

How do I find the price for a target margin?

Divide the cost by one minus the margin as a decimal. For a 40% margin on a $30 cost, the price is 30 divided by 0.6, which is $50. Adding 40% to the cost gives $42, which is only a 28.6% margin.

What is gross margin?

Gross margin is revenue minus the cost of goods sold, divided by revenue. Cost of goods sold covers the direct cost of what you sold, such as stock and materials, but not rent, wages for general staff or advertising. Those come out later, in operating and net margin.

What is a good profit margin?

It depends on the trade. Resellers of branded goods often work on thin gross margins, while handmade goods, services and digital products usually need much higher ones to cover time and overheads. Compare your figure with your own costs and goals rather than a single benchmark.

Can a margin be over 100%?

No. Margin is a share of the selling price, and profit can never be larger than the price unless the cost is negative. Markup has no upper limit: a $10 item sold for $40 has a 300% markup and a 75% margin.

Is this margin calculator free?

Yes, with no signup. It runs in your browser and nothing is sent anywhere.

Related: Markup Calculator, Break-Even Calculator, Payment Processing Fee Calculator, Etsy Fee Calculator, Website builder.

Turn this result into your website or see the We.Inc website builder. The free plan gives you up to 3 template sites on a we.inc address, with no AI credits and no custom domain. Paid plans are Starter at $20 a month, Pro at $50 and Max at $99. See pricing.

More in Free Tools

We.Inc is an AI-powered website builder you can resell under your own brand. Launch a branded client dashboard, bill on Stripe Connect, and deliver AI-generated websites in minutes. White-label plans start at $99 a month for 25 client sites, with a 7-day free trial and no per-site fees.

Product

Who It's For

Features

Resources

Company

View Sitemap