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Frequently Asked Questions

What is profit margin?

Profit margin is the percentage of revenue that remains as profit after subtracting costs. Formula: (Profit ÷ Selling Price) × 100. A 40% margin means 40¢ of every $1 in sales is profit.

What is the difference between margin and markup?

Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. A 50% markup on a $50 cost gives $75 selling price, but the margin is only 33.3% (25/75). Markup is always higher than margin for the same numbers.

What is a good profit margin for ecommerce?

Ecommerce margins vary by niche; 20–40% is common after platform fees. Retail ranges from 25–50% (grocery lower, clothing higher). Use this calculator to compare your numbers to industry benchmarks.

How do I calculate selling price from target margin?

Selling Price = Cost ÷ (1 − Margin/100). For example, to achieve 30% margin on a $70 cost: $70 ÷ 0.70 = $100 selling price.

Is this calculator free and private?

Yes. It runs entirely in your browser, no signup required, and no data is stored or sent to servers. Free forever. Privacy-first.