BUSINESS · PRICING

Profit Margin & Markup Calculator

Quickly calculate your profit per unit, profit margin, and markup based on cost and selling price. Use this tool to check whether your price is profitable and how much you actually keep after costs.

  • Instant insight: see profit, margin (%), and markup (%) in one place.
  • Include extra costs: add marketing, shipping, or platform fees per unit.
  • Scale up: estimate total profit for any number of units sold.

Perfect for online sellers, small businesses, and freelancers who want a clear view of their pricing and profitability without spreadsheets.

Cost details
$
Base product cost per unit (materials, purchase price, etc.).
$
Marketing, shipping, packaging, platform fees, etc. per unit.
Selling price & quantity
$
How much you charge per unit (before tax).
Used to estimate total profit. Defaults to 1 if empty.
Mode: cost & selling price per unit

Pricing results

Profit per unit
$10.00
after all costs per unit
● Profitable Effective cost per unit: $10.00
Profit margin
50.0%
Profit ÷ selling price
Markup
100.0%
Profit ÷ effective cost
Total profit
$1,000.00
Based on 100 units
Break-even price
$10.00
Selling price with zero profit
A healthy profit margin for many small businesses is often between 20% and 50%, but the right number depends on your industry and risk level.

What is profit margin?

Profit margin tells you how much profit you keep from each sale after all costs are covered. It is expressed as a percentage of your selling price. The formula is:

Profit margin (%) = (Profit per unit ÷ Selling price per unit) × 100

For example, if you sell a product for $20 and your total cost per unit is $12, your profit is $8. Your profit margin is 8 ÷ 20 = 0.40, or 40%.

What is markup?

Markup shows how much you increase the price compared to your cost. It is expressed as a percentage of your cost (not the selling price). The formula is:

Markup (%) = (Profit per unit ÷ Effective cost per unit) × 100

Using the same example, cost is $12 and profit is $8. Your markup is 8 ÷ 12 ≈ 0.67, or about 67%.

Margin vs. markup: what is the difference?

Margin and markup describe the same profit in two different ways:

  • Margin compares profit to the selling price.
  • Markup compares profit to your cost.

A 50% margin is not the same as a 50% markup. For example:

  • If your cost is $10 and you apply a 50% markup, your price becomes $15.
  • Your profit is $5, so your margin is 5 ÷ 15 ≈ 33.3%.

How to use this Profit Margin & Markup Calculator

This tool is designed to be simple and practical for daily pricing decisions:

  • Enter your cost per unit and any extra costs per unit.
  • Fill in your selling price per unit.
  • Optionally, add a quantity to estimate total profit.
  • Click Calculate to see profit per unit, margin, markup, and total profit.

If your profit per unit is negative, the tool will clearly show that you are selling at a loss so you can adjust your price or reduce costs.

Tips for better pricing decisions

When thinking about profit margin and markup, consider the following:

  • Know your true cost: include packaging, platform fees, discounts, and average marketing cost per sale.
  • Compare with your industry: some businesses run on low margins but high volume, others need higher margins to stay safe.
  • Test and review: review your prices regularly as costs and competition change.

Use this calculator whenever you add new products, change suppliers, or update your prices to make sure your business stays profitable and sustainable.