Small business pricing

Profit margin calculator

A sale is not profit. Calculate what remains after variable costs, selling fees and other expenses, then compare margin versus markup.

All figures must be in the same currency. These are per-sale amounts, not tax advice.

Your sale economics
Profit per sale—
Profit margin—
Markup on product cost—
Margin = profit / selling price. Markup = profit / product cost. Fees and expenses affect profit even when the selling price stays the same.

Margin vs markup: the difference

Suppose you sell something for $100, with $60 of direct cost and $10 in total fees and other expenses. You make $30 in profit. The profit margin is 30% of the selling price, while the markup is 50% relative to the $60 product cost. That is why a 50% markup does not imply a 50% profit margin.

For subscription services or projects with overhead, account for the relevant fixed and variable expenses before setting a price. This calculator does not estimate demand or guarantee an appropriate profit margin.