# Profit Margin and Markup Calculator

> Profit margin calculator and markup calculator: get margin, markup, and gross profit from cost and price, or price from target margin. Free, no signup.

- **Canonical URL:** https://boringtoolskit.com/profit-margin-markup-calculator/
- **Category:** Seller & Business
- **Evidence level:** authored-methodology
- **Reviewed:** July 26, 2026
- **Last verified:** 2026-10-12
- **Privacy:** Inputs and results stay in this browser unless the page clearly labels an external request.

## How it works

Profit = sale price − cost. Margin % = profit ÷ sale price × 100. Markup % = profit ÷ cost × 100.

## Worked example

If an item costs $42 and sells for $79, profit is $37, gross margin is about 46.8%, and markup is about 88.1%.

## Assumptions

- Cost should include direct product or job cost before overhead if you want gross margin.
- Shipping, payment fees, refunds, taxes, ads, and labor may need separate line items.
- Target prices should be checked against market demand and customer willingness to pay.

## Common questions

### How do you calculate profit margin?

Subtract cost from selling price to find profit. Then divide profit by selling price and multiply by 100: profit margin = (price - cost) / price × 100.

### What is the difference between margin and markup?

Profit margin divides profit by selling price. Markup divides the same profit by cost. Because their denominators differ, equal cost and price figures usually produce different percentages.

### How do you calculate selling price from target margin?

Divide cost by (1 minus the target margin as a decimal). For a 40% target margin, divide cost by 0.60 to find the selling price.

## Related tools

- /amazon-seller-fee-calculator/
- /seller-tools/
- /small-business-tools/

## Sources

- [Calculation methodology and verification standard](/methodology/)

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