Profit Margin & Markup Calculator
Calculate gross profit margin, markup percentage, and find the right selling price for any product or service.
Calculate Profit Margin
Results
Enter cost and selling price to see results.
What price should I charge?
Enter your cost and target margin to find the selling price.
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Try Mewayz Free →Frequently Asked Questions
What is the difference between profit margin and markup?
Profit margin is calculated as profit divided by revenue (selling price). Markup is profit divided by cost. A product that costs $60 and sells for $100 has a 40% profit margin but a 67% markup. Margin is always a lower percentage than markup for the same product.
What is a good profit margin for a small business?
It varies by industry. Retail typically targets 20–50% gross margin. Service businesses often achieve 50–70%. SaaS software can reach 70–90%. As a rule of thumb, a gross margin above 40% gives you room for operating expenses and still turn a net profit.
How do I calculate gross profit margin?
Gross Profit Margin = ((Revenue − Cost of Goods Sold) / Revenue) × 100. For example, if you sell a product for $100 and it cost you $60 to produce, your gross profit is $40 and your margin is 40%.
What is the formula for markup?
Markup = ((Selling Price − Cost) / Cost) × 100. A product that costs $50 and sells for $75 has a markup of 50% — but a profit margin of only 33.3%.