For business owners
Free profit margin calculator
Use the profit margin calculator to see what remains after costs, compare margin with markup and check a target price. Change the numbers to match your sale.
- Free to use
- No account needed
Your margin
40%of your selling price remains after entered costs
- Selling price
- $1,000.00
- Entered costs
- $600.00
- Amount after entered costs
- $400.00
- Markup on entered costs
- 66.67%
Margin divides by selling price. Markup divides by cost. This is not your final take-home profit unless you included every relevant expense.
Price for your target
$857.15 reaches at least 30% margin on the entered costs.
Your current price is $142.85 above this target. Break-even before omitted expenses is $600.00.
More optionsExport the calculation
Includes USD amounts, percentages and cost assumptions for the current calculation. Undefined percentages are left blank and explained in Notes.
Use it from an AI browser
This page has site tools: actions an AI agent can call directly, with no plugin or API key. The ChatGPT desktop app’s browser can use them where site tools are available, and so can Chrome with WebMCP turned on. The agent works on this page, with the same steps and limits as its buttons, so you can check the result before you use it.
Open doany.ai/tools/profit-margin-calculator and work out my margin on a $2,450 bathroom refresh that cost me $1,710 in labor, materials and fees, and tell me what I would need to charge to reach a 35% margin.
Site tools work only while this page is open. They never send messages, invoices or payments for you.
Check what your price leaves with the profit margin calculator
Use the profit margin calculator for one sale, job or consistent reporting period. Keep revenue and costs on the same basis, then check whether your price covers the expenses entered.
Enter the price actually paid
Enter the selling price after discounts and before sales tax in the profit margin calculator. For a monthly comparison, use the whole month’s sales and costs instead of mixing one sale with monthly expenses.
Include the costs you want to cover
Add materials, paid labor, shipping, platform fees and a fair share of overhead. The profit margin calculator does not add missing costs or choose a labor rate for you.
Compare with your chosen margin
The result shows margin, markup and the amount after entered costs. Your target produces a minimum price rounded up to the next cent; adjust the target to compare your own options.
Match the calculation to your business
The profit margin calculator formula stays the same. What you include in cost changes the meaning of the result.
A service job
What to change
Enter the quoted job price and all job costs in the profit margin calculator, including your labor and allocated overhead. Compare a discount with the original quote.
Before you use it
A positive difference may still leave unpaid overhead or owner time if you left them out.
A digital product
What to change
Use the actual sale price after discounts. Include the platform/payment fee and any delivery, support or advertising cost you allocate to that sale.
Before you use it
A low production cost does not make advertising and support free. Add those expenses yourself.
A physical item
What to change
Include purchase/manufacturing cost, packing, shipping you pay and selling fees in the profit margin calculator. Use the selling price after discounts and before sales tax.
Before you use it
Do not count customer-paid shipping twice or compare per-item costs against an entire order.
Review your profit margin calculator result before repricing
- Revenue and costs refer to the same sale, job or period.
- Discounts are reflected in the entered selling price.
- Fees, overhead and owner labor are included if you want the result to cover them.
- Your target margin is your own assumption, not a market benchmark.
- Zero sales has no percentage margin; zero cost has no percentage markup.
Margin divides by price
The profit margin calculator uses (selling price − entered costs) ÷ selling price × 100. A $1,000 job with $600 entered costs leaves $400, or 40% of the selling price. The amount is only as complete as the costs you entered.
Markup divides by cost
The same $400 difference is 66.67% of the $600 cost. Adding 40% to cost would produce a $840 price and only a 28.57% margin. Margin and markup use different denominators.
A target gives you a price to compare
Target price = entered costs ÷ (1 − target margin). With $600 costs and a 30% target, the minimum cent price is $857.15. The profit margin calculator does not decide a competitive price or predict how many customers will buy.
Sources checked on October 9, 2026: Shopify: profit margin formula and cost basisopens in a new tab
Questions about this tool
How do I calculate profit margin?
Subtract costs from selling price, divide the difference by selling price and multiply by 100. Enter both amounts on the same basis in the profit margin calculator. With $100 revenue and $60 costs, the difference is $40 and the margin is 40%.
What is the difference between profit margin and markup?
Margin divides the amount after costs by selling price. Markup divides it by cost. A $100 sale with $60 costs has 40% margin and 66.67% markup. The percentages are different even though the dollars are identical.
What is a good profit margin for my business?
There is no industry recommendation built into the profit margin calculator. Choose a target based on your complete costs, risks and business goals, then compare that price with what customers will pay. A calculator cannot establish local demand or a competitive market price.
Is this gross margin or net profit margin?
That depends on the costs you include. Product/job direct costs give a narrower margin. Including relevant operating expenses gives a broader cost basis. The result is labeled as the amount after entered costs because the tool cannot confirm that all expenses, taxes or owner compensation are included.
Can profit margin be negative?
Yes. When selling price is below entered costs, the profit margin calculator shows a loss and a negative margin. A $75 sale with $100 costs loses $25 and has a −33.33% margin. The target-price comparison shows how much the entered price would need to rise.
What happens with zero revenue or zero cost?
At zero selling price, margin is undefined because it would divide by zero. The dollar gain or loss still appears. At zero cost, markup is undefined. A positive sale with zero entered cost has 100% margin before any omitted expenses.
How do I find a price for a target margin?
Divide entered costs by one minus the target margin as a decimal. For $600 costs and a 30% margin, $600 ÷ 0.70 gives $857.142857. The tool rounds the required selling price up to $857.15 so it meets the entered target.
Does this include payment fees, discounts or tax?
Nothing is added automatically. Use the actual selling price after a discount and include relevant fees in entered costs. Keep sales tax collected for remittance outside the revenue figure. If fees change with price, use the service pricing calculator’s explicit fee model for that comparison.
Can I export my profit margin calculation to a spreadsheet?
Open More options and choose Download CSV after calculating your numbers. The file includes selling price, entered costs, margin, markup, target price and the assumptions that qualify them. Dollar values retain exact cents; percentages retain four decimal places. Undefined percentages are blank with an explanation in the Notes column.