Profit Margin Calculator

Free profit margin calculator for business owners, freelancers, retail, and e-commerce. Enter cost and selling price to see profit or loss, profit margin %, markup %, revenue, and ROI — or use Desired Margin % mode to solve for the selling price from cost. Choose a display currency label and get clear profit, loss, or break-even indicators. Browser-based planning math only — not accounting, tax, or investment advice.

How to Use the Profit Margin Calculator

Pick Cost & Selling Price or Desired Margin % mode, choose a currency label, enter values, then calculate to see profit or loss, margin %, markup %, revenue, and ROI.

  1. Select Cost & Selling Price or Desired Margin % mode.
  2. Choose Currency (display label only).
  3. Enter Cost Price.
  4. Enter Selling Price, or in Desired Margin % mode enter Desired Margin % instead.
  5. Press Calculate and read the profit/loss banner and metrics grid.
  6. Press Reset to start a new scenario.

Formulas

  • Profit = selling price − cost price
  • Profit margin % = profit ÷ selling price × 100
  • Markup % = profit ÷ cost price × 100
  • ROI % = profit ÷ cost price × 100
  • Desired selling price = cost ÷ (1 − desired margin ÷ 100)

Worked examples

  • Cost 40, sell 60 → profit 20, margin 33.33%, markup 50%, ROI 50%.
  • Cost 100, desired margin 25% → selling price 133.33, profit 33.33.
  • Cost 50, sell 45 → loss 5, negative margin and markup shown.

Common mistakes

  • Using markup % when you mean margin % (they differ).
  • Entering desired margin ≥ 100% (not valid in Desired Margin % mode).
  • Mixing currencies without converting cost and price to the same unit.
  • Treating single-SKU margin as full P&L after overheads.

Limitations

One cost and one selling price per run — no baskets, shipping, fees, or tax lines. Currency label only; no FX. Planning estimates — not accounting or tax advice.

Privacy

Cost and selling prices stay in your browser. Values are not uploaded to ToolsLibrary servers.

FAQ

What is the difference between margin and markup?

Profit margin % = profit ÷ selling price × 100. Markup % = profit ÷ cost price × 100. The same profit yields a higher markup % than margin % because the divisor is smaller (cost vs selling price).

Can I solve for selling price from a desired margin?

Yes. Use Desired Margin % mode with your cost price. Selling price = cost ÷ (1 − desired margin ÷ 100). Desired margin must be less than 100%.

How is ROI calculated here?

ROI % = profit ÷ cost price × 100. It expresses return on the cost basis. When cost is zero and selling price is positive, ROI is treated as undefined/infinite in display.

What do profit, loss, and break-even mean on the results?

Profit when selling price exceeds cost; loss when cost exceeds selling; break-even when they are equal (within rounding). The banner and summary text reflect which case applies.

Does currency selection convert amounts?

No. Currency is a display label for formatting results. Enter cost and selling price in the same currency unit.

What is revenue in the results grid?

Revenue equals the selling price for a single-unit calculation — the money received from the sale before external expenses beyond the entered cost.

Can margin be negative?

Yes. When selling price is below cost, profit is negative, margin and markup show as loss percentages, and the indicator shows loss.

Are my prices uploaded?

No. Cost, selling price, and results are calculated in your browser and are not uploaded to ToolsLibrary servers.

Is this accounting or tax advice?

No. Results are single-SKU planning math. Overheads, VAT/GST, discounts, and COGS allocations may differ in real books — consult your accountant for official figures.