Profit Margin & Pricing Calculator
Calculate profit margins, markup percentages, and optimal pricing strategies
Enter Your Numbers
Total cost to produce or acquire
Price you charge customers
Calculate total profit for multiple units
Results
Enter your cost and selling price to see results
Understanding Your Metrics
💡 Profit Margin
Shows what percentage of your selling price is profit. Formula: (Selling Price - Cost) / Selling Price × 100
📈 Markup Percentage
Shows how much you're adding to your cost. Formula: (Selling Price - Cost) / Cost × 100
✅ Healthy Margins
Most businesses target 20-50% profit margins, but this varies by industry. Retail: 20-30%, Services: 40-60%
🎯 Pricing Strategy
Consider market rates, competition, value provided, and operating expenses when setting prices.
Profit margin calculator FAQs
Is profit margin the same as markup?
No. Profit margin is profit divided by selling price, while markup is profit divided by cost. Two prices can have the same profit in currency terms but very different margins and markups. The calculator shows both so you can compare.
Can this tool handle multiple products or tiers?
This page focuses on one scenario at a time, but you can quickly change quantities, costs, or prices to model several products or plans and export a simple text report for your records or spreadsheets.
Do these results include taxes or overhead?
The outputs are based only on the cost and selling price you enter. They do not automatically include taxes, payment processing fees, shipping, or other overhead, so you should factor those in separately when making pricing decisions.
📚 Need Help with Business Planning?
Check out recommended business planning tools and resources to optimize your pricing strategy.
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