Profit Margin Calculator
Margin is the piece of every sale you keep. This tool shows yours from just two numbers.
Price in, cost in, margin out. With the profit per sale on top.
To see the profit over a month, not just one sale.
Margin looks at the sale price. Mark up looks at your cost. They are not the same thing.
How to use this tool
- 1Price minus cost gives profit per sale.
- 2Profit split by price times 100 gives the margin.
- 3Profit split by cost times 100 gives the mark up.
The math behind it
Profit margin = (revenue - costs) / revenue x 100
Sell for 100 with 60 in costs and your profit is 40.
Split 40 by 100 and the margin is 40 percent.
Who this tool is for
I watch which tools folk open most, and this one gets used by the same kinds of people again and again. If any of these sound like you, you are in the right place.
- Small sellers pricing a product
- Folk comparing what to sell
- Biz owners checking a price still works
My first side hustle sold a thing for 20 that cost 14. I felt clever until I ran the margin. Fees, a bit of travel and my time turned 6 a sale in to almost nothing. Margin math did not kill the hustle. It made the next one priced right.
Tips from me
- Margin uses revenue as the base. Markup uses cost. Mixing them is the classic pricing error.
- Track margin per product, not just in total. One hero can hide ten leaks.
- If margin shrinks while sales grow, your costs are growing faster. Go look.
Mistakes I see with this sum
These are the three slips I made my self or watch folk make most. Skip them and your number will be closer to the truth on the first try.
- 1Pricing from cost only and forgetting fees, wear and your own time.
- 2Mixing up margin and markup. One looks at price, the other at cost.
- 3Chasing fat margins on things that will not sell at that price.
Two words worth knowing
Margin
Profit as a slice of the sale price.
Unit economics
The money story of one single sale.
That is the whole page. The tool does the math, and the words above give it a shape. If a number still looks odd, change an input and watch what moves. Playing with the boxes taught me more than any guide did.
Common questions
+What is a good margin?
It moves by trade. Shops often run thin margins. Tools and software can run fat ones. Know your trade norm.
+Margin or mark up. Which should I track?
Both. Margin shows your slice of each sale. Mark up shows how you priced over cost.
+What is a good profit margin?
It swings by field. Shops run thin, software runs fat. Compare with your own trade, not with the news.
+How is margin different from markup?
Margin is profit over price. Markup is profit over cost. A 50 percent markup is a 33 percent margin.
+Can margin be over 100 percent?
Not on the margin line. If your math shows that, a cost went in negative by mistake.