Calculate margin, markup and selling price in one second. Knowing your real profit is the first step to growing your business.
From cost & price to margin, or from cost & margin to price
Cost, selling price or desired margin percentage
Margin, markup, profit per unit and total profit
Markup grows much faster than margin — confusing them can cost you dearly.
Save multiple calculations and compare them side by side.
Calculate a margin and click “Save scenario” to start comparing.
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Generate marketing copy for free →Profit margin is the percentage of profit relative to the selling price: (sale - cost) / sale × 100. Markup is the percentage of profit relative to the cost: (sale - cost) / cost × 100. Example: if you buy at $60 and sell at $100, the margin is 40% but the markup is 66.7%.
It depends on the industry. Services: 50-80%. Digital products: 70-90%. Retail: 30-50%. Restaurants: 60-70% gross. A net margin of 10-20% is considered healthy for most small businesses.
Selling price = Cost / (1 - margin/100). Example: if the cost is $60 and you want a 40% margin, the selling price is $60 / (1 - 0.40) = $100.
Gross margin does not include taxes. To get net margin, subtract taxes, operating costs and overheads from the gross profit. This calculator shows gross margin.
You can improve margin by: reducing production/purchase costs, increasing prices, reducing overhead, improving operational efficiency, or focusing on higher-margin products/services. Even a 2-3% improvement can significantly impact your bottom line over time.
Discounts affect margin non-linearly. For example, with a 40% margin, a 10% discount on price reduces your margin to about 33%. To maintain the same total profit, you'd need to sell about 25% more units. Use the “Discount Impact” section above to calculate your specific case.
Margins vary widely by industry. Software/SaaS: 70-85%. Consulting: 50-80%. E-commerce: 40-60%. Retail: 30-50%. Restaurants: 60-70%. Manufacturing: 25-45%. Construction: 15-25%. Automotive: 10-20%. Use the Industry Benchmark section above to see where you stand compared to the average.
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