Profit Margin Calculator
Calculate the perfect pricing for your products and services. Set markup percentages, determine profit margins, and find the optimal selling price to maximize your profits.
Know your costs? Add markup to find the selling price.
What it costs you to make/buy this product or service
How much to add to your cost (50% = add half your cost price)
Understanding Profit Margins vs. Markup
Profit Margin
Percentage of the selling price that is profit.
Example: $30 profit on $100 sale = 30% margin
Markup
Percentage added to your cost price.
Example: $30 profit on $70 cost = 43% markup
Pricing Strategy Tips
- • Value-based pricing: Price based on customer value, not just cost-plus
- • Competitive analysis: Research what competitors charge for similar products
- • Psychological pricing: $19.99 often sells better than $20.00
- • Test and adjust: Start higher, then adjust based on customer response
- • Bundle smartly: Higher margins on bundles vs. individual items
When to Use Each Calculation Mode
Cost + Markup → Price
Use when you know your costs and want to add a specific markup percentage. Common for retail, manufacturing, and cost-plus pricing strategies.
Price + Margin → Cost
Use when you know the market price and want to work backwards to find your maximum allowable cost. Perfect for competitive markets.
Frequently Asked Questions
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