Profit Margin Calculator
Calculate profit margin, markup, and revenue from cost and price
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Try nowProfit Margin Calculator - Margin & Markup Calculator
Our profit margin calculator helps businesses determine pricing and profitability. Calculate margin from cost and revenue, or find the price needed to achieve a target margin.
Input your cost per unit (what you pay) and your selling price (what customers pay), or enter revenue and cost to calculate margin on total sales. Tuttilo instantly displays your gross profit amount, profit margin as a percentage, and markup percentage. You can also work backward by entering a desired profit margin to find what price you should charge. The tool shows the difference between margin (profit as a percentage of price) and markup (profit as a percentage of cost). Because everything runs client-side, your pricing strategy stays confidential.
Retail store owners set product prices by calculating the markup needed to cover overhead costs and achieve target profit margins. E-commerce sellers evaluate whether products are worth stocking by analyzing supplier costs against competitive market prices. Restaurant managers price menu items by calculating food costs and applying industry-standard margin targets. Consultants structure service packages by determining hourly rates that deliver healthy margins after accounting for business expenses and taxes.
A 50% margin is not the same as 50% markup—a product that costs $50 sold at $100 has a 50% margin but a 100% markup. Different industries have vastly different typical margins: luxury goods often exceed 80%, while grocery stores operate on 2-3% margins. When calculating margin, include all costs beyond just the product—shipping, packaging, payment processing fees, and returns can erode seemingly healthy margins. Psychological pricing strategies like $19.99 instead of $20 can maintain perceived value while protecting margin through higher volume.
All processing happens directly in your browser. Your files never leave your device — no server uploads, no cloud storage, no data retention. The tool works offline once loaded, requires no registration, and is completely free with no usage limits.
Frequently Asked Questions
What is profit margin?
Profit margin is the percentage of revenue that is profit. Formula: Margin = (Revenue - Cost) ÷ Revenue × 100. A 25% margin means /bin/zsh.25 of every dollar earned is profit.
What is the difference between margin and markup?
Margin is profit/revenue, markup is profit/cost. If you buy for and sell for : margin = 40%, markup = 66.7%. Markup is always higher than margin.
What is a good profit margin?
It varies by industry. Retail: 2-5%, Software: 20-40%, Services: 15-25%. Higher margins generally indicate better pricing power and efficiency.
How do I calculate price from target margin?
Price = Cost ÷ (1 - Margin/100). For a 30% margin on a product: ÷ 0.70 = selling price.
Can margin be over 100%?
No, margin cannot exceed 100% (that would mean zero or negative cost). However, markup can be any percentage. A 100% markup equals a 50% margin.