Profit Margin Calculator: Work Out Your Margin and What to Charge

"How much am I actually making on this?" Put in your cost and price and get the margin instantly — or go the other way: tell it the margin you want, and it tells you what to charge. Everything is calculated in your browser. Your numbers are never sent anywhere.

How margin actually works

Two things people mix up constantly:

• Margin = (price − cost) ÷ price. This is what people mean by "a 60% margin."
• Markup = (price − cost) ÷ cost. This is what you mean by "I sell it for 2.5× what I pay."

Same sale, different numbers. Cost $40, price $100: that's a 60% margin but a 150% markup. Believing you're making 150% when you're making 60% is a common mistake — and an expensive one.

One more thing: gross profit is not take-home profit. Margin only subtracts the direct cost of the thing you sold. Rent, power, wages, and your own time haven't come out yet. A shop with a 60% margin can easily end the year at 5% net.

You can only calculate a margin if someone wrote the numbers down. The real problem is usually that after closing, nobody has the energy left to reconcile the day and read the report.