Toolkeel

Profit margin calculator

Price products with confidence: see your profit, margin and markup, or work backwards from the margin you want.

  • Free
  • Private
  • No sign-up

From cost and price

Profit

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Gross margin

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Markup

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Cost —
Profit —

Price for a target margin

Selling price needed

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How to use it

  1. Enter your cost and selling price to see profit, margin and markup.

  2. Or enter a cost and target margin to get the price you need.

  3. Results update as you type.

About this tool

Margin is profit as a share of the selling price: (price − cost) ÷ price. Markup is profit as a share of the cost: (price − cost) ÷ cost. They describe the same profit differently, which causes expensive pricing mistakes: adding a 40% markup to a cost of 60 gives a price of 84 and a margin of only 28.6%.

To hit a target margin, divide the cost by (1 − margin). A 40% margin on a cost of 60 needs a price of 60 ÷ 0.6 = 100.

Good to know

  • Gross margin only: overheads, taxes and fees are not included.
  • Prices should normally exclude VAT for margin calculations.

Frequently asked questions

What is the difference between margin and markup?

Margin divides profit by the selling price; markup divides it by the cost. A 50% markup equals a 33.3% margin.

How do I price for a 30% margin?

Divide the cost by 0.70. A cost of 70 needs a price of 100.

What is a good profit margin?

It varies widely by industry, from a few percent in groceries to 70% or more in software. Compare with businesses like yours.

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Last updated 2026-10-20 by the Toolkeel team. How we build and check our tools.