Profit Margin Calculator
Calculate the selling price you need for a target profit margin, or work out the margin and markup on a price you already charge. Clear results for freelancers and small businesses.
Margin vs markup — the costly confusion
Margin and markup are not the same, and confusing them quietly erodes profit. Markup is profit as a percentage of your cost. Margin is profit as a percentage of your selling price. A 50% markup is only a 33% margin. This profit margin calculator shows both at once so you always price from the right number.
Finding the right selling price
Switch to 'Find price from margin', enter your cost and the margin you want to keep, and the tool returns the price you must charge. This is the correct way to price — start from the margin you need to stay sustainable, then work back to the number on the invoice, rather than guessing a price and hoping it is profitable.
Checking an existing price
Already have a price? Switch to 'Find margin from price' to reveal the true margin and markup hiding inside it. Many freelancers discover their 'comfortable' price leaves a thinner margin than they assumed once costs are counted properly.
Frequently Asked Questions
What is the difference between margin and markup?
Markup is profit divided by cost; margin is profit divided by selling price. The same profit gives a smaller margin percentage than markup percentage.
Can profit margin be over 100%?
No. Margin is a share of the selling price, so it can approach but never reach 100%. Markup, however, can exceed 100%.
What is a healthy profit margin?
It varies widely by industry, but many service businesses target margins well above 30%. Use the figure that keeps you sustainable after all costs.
Is the calculator free to use?
Yes — free, unlimited and fully private in your browser.