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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 is an essential tool for business owners, freelancers, and retailers to determine the profitability of their products or services. It helps you calculate the gap between your cost price and your selling price, ensuring that you cover your expenses and generate a healthy profit.
Our calculator is unique because it also integrates Tax (GST/VAT) calculations, allowing you to see your "real" profit after accounting for government levies.
Many people use these terms interchangeably, but they represent different financial perspectives:
Rule of Thumb: Markup is always a higher percentage than margin for the same dollar amount of profit.
When selling products, you must often collect tax (like GST or VAT) from the customer. This tax is not part of your revenue; it is collected on behalf of the government.
Our calculator handles this by:
"Good" varies by industry. Software companies often have margins above 70%, while grocery stores might operate on thin margins of 2-5%. Most small retail businesses aim for a 20-50% gross margin.
The formula for Profit Margin is: Margin = ((Selling Price - Cost Price) / Selling Price) * 100
Yes! Simply treat your "Cost Price" as the cost of your time, materials, and overheads required to deliver the service.