Are you pricing for profit?
Enter your price and costs to see your real margin, your markup, and the price you need to hit your target margin.
Margin vs. markup, with your numbers
They use the same profit but divide by different things, which is why mixing them up leads to underpricing.
Your best moves PRO
See exactly how much profit you'd gain from raising prices, cutting costs, adding upsells, or winning more orders, monthly and yearly.
Find out which change grows your profit the most, and how many sales you could lose and still come out ahead.
Get the Pro versionGet the full Pricing & Margin Calculator Pro
Everything in this free version, plus the tools to price, plan, and grow profit across your whole product line.
- Profit scenarios"Raise your price by $2 and earn $X more a year," ranked for you.
- Upsells, cross-sells, and kitsSee how add-ons and bundles lift your profit per order.
- Discounts and couponsKnow what a promotion really costs you.
- Repeat purchasesMonthly and annual profit, including returning customers.
- Price and cost gridTest price increases and cost cuts at the same time.
- Compare up to 6 products + spreadsheetRank your product line, plus an Excel and Google Sheets version.
Made by Reagan T. Pollack, author of No Startup Left Behind. reaganpollack.com
Disclaimer: This calculator is provided for general educational and informational purposes only and is not financial, accounting, tax, or legal advice. Results are estimates based solely on the numbers you enter and may contain errors or inaccuracies. No guarantee is made as to the accuracy, completeness, or reliability of any calculation. Reagan T. Pollack is not liable for any losses, damages, or decisions resulting from the use of this calculator or reliance on its results. Consult a qualified professional before making business or financial decisions.
What this margin calculator shows you
Enter your selling price, product cost, and per-order costs to see your profit margin, your markup, your all-in margin after shipping and payment fees, and the price you need to charge to hit any target margin.
Frequently asked questions
What is the difference between margin and markup?
Both use the same profit, price minus cost. Margin divides it by the selling price; markup divides it by the cost. A product that costs $20 and sells for $40 has a 100% markup but a 50% margin.
How do I calculate profit margin?
Subtract your cost from your selling price, then divide by the selling price. For a $40 product that costs $14: ($40 − $14) ÷ $40 = 65%.
How do I price for a target margin?
Divide your cost by one minus your target margin. To keep 40% on an item that costs $20: $20 ÷ (1 − 0.40) = $33.33. Marking it up 40% to $28 would leave you with only about a 29% margin.
What is a good profit margin?
It varies widely by industry and business model. The calculator’s health bands are rough guides. What matters most is that your all-in margin, after shipping, fees, discounts, and fixed costs, leaves enough profit to run and grow the business.