---
title: "Profit margin calculator — free, runs in your browser"
description: "Margin, markup and the price needed to hit a target margin. Free, no sign-up, and nothing you enter leaves your browser."
url: https://atoneplace.net/tools/profit-margin-calculator/
site: "At One Place"
---

# Profit margin calculator

Margin, markup and the price needed to hit a target margin.

## How it works

Works out gross profit, margin and markup from cost and price, and reverses it to give the price needed for a target margin.

Margin and markup are the confusion that costs real money. Margin is profit as a share of the selling price; markup is profit as a share of the cost. A 50% markup is a 33.3% margin, and a 50% margin needs a 100% markup. Pricing to a margin target using a markup formula undercharges every time, and the gap widens as the target rises.

The formula that matters: to hit a target margin, price = cost ÷ (1 − margin). To apply a markup, price = cost × (1 + markup).

> This tool runs entirely in your browser. Nothing you enter is sent to a server, logged or stored, and the page keeps working with the network disconnected.

## Common questions

### What is the difference between margin and markup?

Margin is profit divided by the selling price; markup is profit divided by the cost. A 50% markup is only a 33.3% margin.

### How do I price for a 40% margin?

Divide the cost by 0.6. A $60 cost needs a $100 price, which is a 66.7% markup rather than 40%.

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## Sources

- Calculated on this page — At One Place (/about/)