Profit Calculator

About this calculator

This tool breaks a sale down into three related numbers: the raw profit (selling price minus cost), the margin (profit as a percentage of the selling price), and the markup (profit as a percentage of the cost). Margin and markup answer different questions — margin tells you how much of each sales dollar is profit, while markup tells you how much you added on top of what you paid — and confusing the two is one of the most common pricing mistakes small businesses make.

Retailers, wholesalers and freelancers use it to set prices that hit a target margin, or to check whether a supplier's cost increase still leaves room for profit. It's also handy when comparing products or services with different cost structures, since a high markup doesn't always mean a high margin.