Free Online Profit Margin Calculator

1. Pick the mode — calculate margin from cost and price, or solve for price from cost and target margin.
2. Enter the cost (COGS) and either the selling price or the target margin %.
3. Read the gross profit, margin % and markup %.
4. Adjust inputs to plan pricing or evaluate a deal.

Margin and markup measure the same gap (revenue minus cost) against different bases. Margin = (Revenue − Cost) / Revenue, so a 25% margin means a quarter of every dollar of revenue is profit. Markup = (Revenue − Cost) / Cost, so a 25% markup means the selling price is 1.25× cost. The numbers diverge fast: a 50% markup is only a 33% margin; a 100% markup is a 50% margin.

E-commerce sellers price products by working backwards from a target margin to a selling price. Wholesale buyers translate a supplier's markup quote into the margin they'll actually book. The forward mode accepts cost and revenue (or selling price) and returns gross profit, margin % and markup %. The reverse mode takes cost and a target margin and returns the price required, using Price = Cost / (1 − Margin).

Gross margin only accounts for cost of goods sold. Net margin — after operating expenses, taxes and interest — is always lower, so be clear which figure you're comparing across companies or industries. General information only; consult a qualified accountant for decisions that matter.