Profit Margin Calculator
Calculate your profit, profit margin and markup instantly. Then see what selling price you need to reach your target margin.
Built by BizPilot for smarter business decisions.
Enter Your Numbers
Profit Overview
What should you charge?
Enter your desired profit margin and BizPilot will calculate the selling price required to reach it.
How Profit Margin Is Calculated
Profit margin shows how much of your selling price remains as profit after your costs have been deducted.
Profit margin and markup are not the same. Margin measures profit as a percentage of your selling price, while markup measures profit relative to your total cost.
See How It Works
Imagine you sell a product for $100. The product costs $55 and you have another $10 in fees, packaging or advertising costs.
Profit Margin Calculator FAQs
What is profit margin?
Profit margin is the percentage of your selling price that remains as profit after the costs included in the calculation have been deducted. For example, if you sell something for $100 and your total costs are $65, your profit is $35 and your profit margin is 35%.
What is a good profit margin?
There is no single profit margin that is suitable for every business. Appropriate margins vary by industry, business model, operating costs, competition and pricing strategy. Compare your margin with your own expenses, financial targets and relevant industry benchmarks.
What is the difference between profit margin and markup?
Profit margin measures profit as a percentage of selling price. Markup measures profit relative to cost. Because they use different bases, a 50% markup does not equal a 50% profit margin.
How do I calculate a selling price for a target profit margin?
Divide your total cost by one minus your target margin expressed as a decimal. For example, with total costs of $65 and a target margin of 40%, the required selling price is $65 ÷ 0.60 = $108.33.
What costs should I include in the calculator?
Include the costs that are relevant to the profitability decision you are making. These may include product or service costs, payment processing fees, packaging, shipping, marketplace fees and advertising. For a complete view of business profitability, also consider overhead, taxes and other operating expenses separately where applicable.
Make Smarter Business Decisions With BizPilot
Profit margin is only one part of running a profitable business. Use BizPilot to plan pricing, costs, break-even points, sales targets and profitability before committing your money.
Explore the BizPilot Business Starter System One-time purchase • Instant digital access