Margin is calculated as a percentage of the selling price, not the cost — a distinction that matters a lot once you’re setting prices to hit a specific profitability target rather than just marking up a cost.
What Is the Profit Margin Calculator?
A pricing tool with two modes: calculate the profit margin percentage from a known cost and selling price, or work backward from a cost and target margin to find the required selling price.
How to Use It
- Open the tool at /tools/profit-margin-calculator.
- Choose “From cost + selling price” or “From cost + target margin.”
- Enter your values.
- Read the profit amount and margin percentage (or required selling price) instantly.
Key Features
- Two calculation modes, covering both “what’s my margin?” and “what price do I need?” questions.
- Selling-price-based margin math, correctly dividing profit by selling price, not cost (that’s markup, a related but different calculation).
- Target-margin pricing, solving for the exact price needed to achieve a desired margin percentage.
- Clear explanation of the markup-vs-margin distinction, since they’re easy to confuse.
When to Use This Tool
- Setting prices to hit a specific profitability goal, using the target-margin mode.
- Financial reporting and profitability analysis, calculating gross margin on existing sales data.
- Comparing products or services by their true margin percentage rather than just raw profit dollars.
Try It Now
Open Profit Margin Calculator directly, or press ⌘K and type the tool name from anywhere on the site.
Part of the Math & Numbers collection on WebdevToolbox — free, browser-based developer tools with no login required.