Margin Calculator - Calculate Profit Margins, Markup & Revenue

Calculate profit margins, markup percentages, and optimize your pricing strategy for maximum profitability.

Calculation Parameters

$
%
0%50%100%
$

Margin Results

Business Insights

  • $

    Your profit margin is 0% - consider reviewing your pricing strategy.

  • %

    Markup vs Margin: Your 0% markup translates to 0% margin. Remember that markup is based on cost, while margin is based on revenue.

  • ≡

    Pricing strategy: Consider value-based pricing or cost reduction strategies to improve margins.

Understanding Margin vs Markup

Margin

Margin (or profit margin) is the percentage of revenue that is profit. It's calculated as:

Margin = (Revenue - Cost) / Revenue × 100%

Margin shows what percentage of your selling price is profit. A 20% margin means you keep 20% of the revenue as profit.

Markup

Markup is the percentage added to the cost price to determine the selling price. It's calculated as:

Markup = (Selling Price - Cost) / Cost × 100%

Markup shows what percentage you've added to the cost. A 25% markup means you've added 25% to the cost to get the selling price.

Our Margin Calculator is the best tool out there for business owners, marketers and entrepreneurs to quickly compute profit margins, markup percentages, and pricing decisions. No matter if it's an eCommerce store, a SaaS business, or a service-based operation, it is critical that anyone properly understands their profit margins in order to properly price their strategy using data. With this simple to use and highly accurate Margin Calculator, you can calculate your selling price, cost and profit margin in seconds.

Margin Calculator

What is a Margin Calculator?

A Margin Calculator is a free online tool that helps you determine how much profit you make on a product or service based on cost and selling price. It’s perfect for small business owners, freelancers, and large corporations who need to set competitive prices while maintaining profitability.

Knowing your profit margin is important because it measures the percentage of revenue above your costs - which helps you:

Optimize profits
Modify prices to be consistent with the competition
Make informed decisions regarding sustainability and growth
Evaluate price options side-by-side to select the optimal strategy

How to Use the Margin Calculator

Using this Margin Calculator is simple:

1.
Enter Cost Price: Fill in how much it will cost to make or purchase your product/service.
2.
Enter Selling Price: Fill in what your selling price will be.
3.
Calculate Profit Margin: You will see your margin percentage, markup percentage, and total profit immediately.
4.
Compare Scenarios: Use the built-in comparison mode to test more than one pricing plan side-by-side.

This tool also allows for visual representation with graphs that allow for easy identification of costs, revenue, and profitability.

Why Profit Margin Matters

Profit margin is an important operating metric for every business. A healthy margin means:

Sustainable growth - Companies with a strong profit margin can reinvest and scale.
Confidence in pricing - Understanding your margins allows you to price your products without guesswork.
Control cash flow - Knowing your margin allows you to balance your cash flow.
Comparison to competitors - You can compare your margins to industry averages and competition.

With the Margin Calculator, you don't need a spreadsheet or complicated math — just enter the numbers, and the tool does the rest.

Benefits of Using Our Margin Calculator

Free & Easy to Use - No signup required - calculate instantly.
Scenario Comparison - Test different pricing models to maximize profits.
Visual Charts - Get clear revenue breakdowns with pie charts and graphs.
Markup Insights - See how your margin relates to markup percentages.
Business Strategy Support - Make smarter financial decisions.

If you're running a business, understanding your margins is non-negotiable. Our Margin calculator provides you a method to easily understand your profits, adjust your pricing, and scale your business. Whether you are comparing multiple scenarios, looking at markup percentages, or looking to set sales targets for the future, we give you everything you need to understand your profitability.

Begin using our Margin Calculator and take charge of your pricing, today!

FAQs

A margin calculator is used to calculate the percentage of profit margin for a product or service. It provides insight into how sustainable and profitable your pricing is.

The margin formula is - Margin (%) = [(Selling Price - Cost Price) ÷ Selling Price] x 100. However, our Margin Calculator automates this calculation instantly.

Everyone from business owners, freelancers, eCommerce sellers, agencies, and finance professionals, can benefit from using a Margin Calculator to make better pricing decisions.

Absolutely! Our Margin Calculator is 100% free, user-friendly, demystified, and available at no cost online, without registration!