goodcalcs
Business & Self-Employed · United States

Profit Margin Calculator

Updated on 22 Oct 2026 · Checked by Aotob

Selling for $100 what costs $60 is a margin of 40%.

You keep $40 of every sale, a 66.7% markup on cost.

Gross margin

40%

CostProfit
Profit on each sale$40
Markup on cost66.67%
Price for a 50% margin$120

Margin is profit as a share of the price; markup is the same profit as a share of the cost, so markup (66.7%) is always the bigger number.

Show the working

Margin = (100.00 − 60.00) ÷ 100.00 = 40%
Markup = (100.00 − 60.00) ÷ 60.00 = 66.67%

What people ask next

Price for each margin

MarginPriceMarkup
10%66.6711.1%
20%75.0025%
25%80.0033.3%
30%85.7142.9%
40%100.0066.7%
50%120.00100%
60%150.00150%
70%200.00233.3%

Questions people ask

What is profit margin?

Profit as a share of the selling price: (price − cost) ÷ price. A $100 item that costs $60 has a 40% margin.

Margin or markup?

Markup is profit as a share of the cost: (price − cost) ÷ cost. The same $40 profit is a 40% margin but a 66.7% markup.

What is a good margin?

It depends on the trade: grocery 20% to 30%, clothing retail 50% or more, software 70% to 90%. Compare with businesses like yours.

Updated 22 Oct 2026Source: Standard business accounting formulasChecked by AotobGross margin only; overheads and tax come off later.Report an issue