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What you paid to acquire or produce the item
Choose how you want to express your profit percentage
Example: 20% means you keep $20 profit for every $100 sold
Override the calculated selling price. Leave empty to auto-calculate from your margin.
A margin calculator helps you determine the right selling price for your products to achieve your desired profit. Whether you're running a small business, selling handmade goods, or managing an online store, this tool helps you understand profit margins and pricing strategy in simple terms.
Simply enter what you paid for an item (cost price), choose whether you want to express profit as a percentage of selling price (profit margin) or cost price (markup), and enter your desired profit percentage. The calculator will tell you what to charge customers.
Cost of coffee beans: $2 per cup. You want 60% profit margin. Selling price = $2 ÷ (1 - 0.60) = $5. You sell each cup for $5, keeping $3 profit.
Cost of shirt: $20. You want 50% markup. Selling price = $20 × (1 + 0.50) = $30. You sell each shirt for $30, keeping $10 profit.
Our calculator supports GST, VAT, and sales tax from around the world. When you include tax, it calculates the final price customers pay (including tax) and shows your profit after paying taxes to the government.
Different businesses have different typical margins. Use these as a starting point, but calculate based on your actual costs and market conditions.
Use profit margin when you want to think about profit as a percentage of sales. Use markup when you want to think about how much extra to add to your costs. Retailers often use markup, while service businesses use profit margin.
You can increase profit margin by reducing costs, increasing selling prices, or improving efficiency. Our calculator helps you see the impact of price changes on your margins.
When tax is included, the calculator shows the total price customers pay (including tax) and calculates your profit after subtracting the tax amount you owe to the government.
Recalculate whenever your costs change, you want to adjust pricing, or you're planning new products. Regular margin analysis helps ensure your business stays profitable.