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Profit Margin Calculator

Calculate gross profit margin, net profit margin, markup percentage, and selling price for your business products.

Financial Calculators
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Stop Selling Yourself Short

Running a business is hard enough without accidentally pricing your products too low. One of the biggest mistakes new entrepreneurs make is confusing their 'markup' with their 'profit margin'-and it can literally cost them their business.

If a product costs you $50, and you add a 50% markup, you sell it for $75. But your profit margin is only 33%, not 50%. This calculator completely untangles that confusing math so you always know exactly how much cash is actually staying in your pocket.

Pricing for Profitability

Whether you are running an Etsy shop, a dropshipping empire, or a local service business, you need to protect your margins. Knowing your numbers allows you to run sales, offer wholesale discounts, and pay for marketing without going broke.

Use this tool to easily reverse-engineer your pricing. If you know you absolutely need a 40% profit margin to keep the lights on, just play with the numbers here until you find the perfect selling price.

Frequently Asked Questions

Markup is the percentage of your cost that you add on top to create the selling price. Margin is the percentage of the final selling price that is pure profit. They sound similar, but mathematically, margin is always a lower percentage than markup.

It completely depends on your industry! A grocery store might survive on a razor-thin 2% net margin because they sell massive volume. A software company or consulting business might aim for wild 60% or 70% margins.

To get the most accurate picture, try to use your fully-loaded costs. If you buy a t-shirt for $5, but it costs $2 to ship it to you and $1 in packaging, your real cost is $8. Plug $8 into the calculator.

Absolutely. Once you understand your retail margin, you can easily use this tool to calculate a secondary, lower price to offer bulk buyers while ensuring you still make money.

If you want to run Facebook or Google ads, you need to know your margin. If you only make $10 profit per sale, but it costs you $15 in advertising to get a customer, you are actively losing money on every order.

Yep! It's fully responsive, so you can sanity-check your pricing on your phone while meeting with suppliers or walking through a warehouse.