Peļņas maržas kalkulators
JaunsIegūst peļņu, maržu un uzcenojumu, vai cenu mērķa maržai.
| Markup | Margin |
|---|---|
| 10% | 9.09% |
| 20% | 16.67% |
| 25% | 20.00% |
| 30% | 23.08% |
| 50% | 33.33% |
| 75% | 42.86% |
| 100% | 50.00% |
| 150% | 60.00% |
| 200% | 66.67% |
Results are estimates for general business planning, not financial, accounting or tax advice. Figures here ignore taxes, fees and other costs unless you include them. Check important pricing decisions with a qualified professional.
Runs entirely in your browser. Nothing is uploaded.
Calculate profit margin, markup, and selling price
This margin calculator turns any two numbers into a complete pricing picture. Enter a cost and a selling price to get your dollar profit, gross margin, and markup — or enter a cost with a target margin (or markup) and it works backward to the price you should charge. Everything updates as you type, with no submit button and no sign-up.
It's the everyday tool for pricing products, quoting jobs, checking a supplier deal, or verifying that a sale actually makes money. Because it solves in every direction, it works as a selling price calculator, a markup calculator, and a profit percentage calculator in one. Amazon FBA sellers, Shopify store owners, freelancers, and retail buyers all use the same underlying math — cost, price, margin, markup — and this tool covers all of it.
Margin vs markup — the difference that trips people up
Margin measures profit against the selling price; markup measures the same profit against the cost. They're two views of one number, and mixing them up is the most common pricing mistake in small business. A $40 item sold for $100 makes $60 profit — that's a 60% margin but a 150% markup.
To convert between them: Margin = Markup ÷ (1 + Markup) and Markup = Margin ÷ (1 − Margin). A 50% markup is only a 33.33% margin; a 50% margin needs a 100% markup. The built-in markup ⇄ margin converter handles both directions with a reference table so you never have to guess. Rapidtables.com has a static conversion table, but it doesn't take your specific numbers — this tool works for any value.
How to find the selling price for a target margin
Pricing for a target margin uses one formula: Selling price = Cost ÷ (1 − margin). For a 20% margin, divide by 0.8; for 30%, divide by 0.7; for 50%, divide by 0.5 (double the cost). A $40 cost priced for a 50% margin sells at $80, with $40 of profit.
Reverse it and you can read a margin from any price: Margin % = (Price − Cost) ÷ Price × 100. The calculator keeps every variable linked, so changing cost, price, margin, or markup instantly refreshes the other three. This is particularly useful for ecommerce sellers calculating Shopify or Amazon FBA prices — you know your landed cost and need to know what to charge to hit your margin target after platform fees.
Gross margin, net margin, and contribution margin
Gross profit margin looks only at cost of goods sold and shows how profitable each sale is before overhead. Net profit margin subtracts every other expense too — wages, rent, interest, tax — revealing what the business truly keeps. A 60% gross margin can become a 10% net margin once the bills are paid.
Contribution margin is a planning-focused view: selling price minus variable cost per unit. Each sale 'contributes' that amount toward fixed costs, then profit — making it the number to watch when setting prices or deciding which products to push hardest. The contribution margin panel computes it per unit, as a ratio, and in total. Dropshipping and wholesale businesses find this especially useful since their cost per unit changes with supplier tier.
How this compares to calculator.net, Omnicalculator, and Rapidtables
Calculator.net has a margin calculator that covers the basics but requires a form submission for each calculation and doesn't solve all four directions simultaneously. Its interface hasn't changed much in years and the result page is dense with ads. Omnicalculator buries its margin tool under a long SEO article — you often have to scroll past 800 words before you can enter a number. Rapidtables has a clean static reference page for margin formulas and tables, but it's a reference, not a live calculator — you can't enter your own cost and price to get a custom result.
This tool opens with the calculator at the top, updates all fields as you type, requires no submission, and is fully private — your numbers never leave your device. The markup ⇄ margin converter and the contribution margin panel add features the above tools don't have. No account, no ads, no email. Just the calculation.
Gross margin, operating margin, net margin, and EBITDA margin
Gross margin is revenue minus the cost of goods sold (COGS), divided by revenue. It measures production efficiency — how much of each sales dollar remains after paying for the thing you sold. A $100 product with $30 COGS has a 70% gross margin. Operating margin takes that gross profit and further deducts operating expenses — salaries, rent, marketing, R&D — to show how efficiently the business is actually run. A 70% gross margin can compress to a 15% operating margin once headcount and overhead are factored in. Net profit margin goes one step further, subtracting interest and taxes; it is the true 'bottom line' — the share of revenue the owners actually keep.
EBITDA margin (earnings before interest, taxes, depreciation, and amortization) has become the standard lens in mergers and acquisitions because it strips out capital structure differences (how much debt a company carries) and accounting choices (how aggressively assets are depreciated). Two businesses with identical operations but different debt loads will have different net margins — EBITDA margin shows the underlying operating performance without that noise. Investors and acquirers use it to compare companies on a level playing field.
Typical margin ranges vary sharply by industry. SaaS companies run 70–80% gross margins because copying software costs almost nothing, though operating margins are often thin or negative early due to heavy sales and marketing spend. Grocery stores operate on 20–30% gross margins with razor-thin net margins of 1–3%. Construction firms typically see 15–20% gross margins. Restaurants are notorious for tight margins — 3–9% net — because labor and food costs devour most of the revenue. Understanding where your industry sits tells you whether a margin figure is strong or dangerous.
Pricing strategy and price elasticity of demand
How you set your price determines your margin as much as your cost structure does. Cost-plus pricing — the simplest method — takes your cost and multiplies by (1 + desired markup). It guarantees a floor margin but ignores what customers are actually willing to pay, often leaving money on the table. Value-based pricing flips the logic: you set price according to the value the product delivers to the customer, then work backward to verify the margin is acceptable. Because it captures willingness to pay rather than just cost, value-based pricing consistently produces the highest margins — and it is the dominant model in software, consulting, and premium consumer goods.
Competitive pricing means matching or undercutting the market rate. In that model, your margin is essentially determined by your cost structure — if your costs are higher than a competitor's, you lose. Dynamic pricing, used by airlines, hotels, and ride-sharing platforms, adjusts prices in real time based on demand, time, and inventory. A seat on a Friday flight costs more than the same seat on a Tuesday because demand is higher — the algorithm captures maximum revenue at each moment. For most businesses outside those sectors, the relevant insight is to raise prices during high-demand periods and use discounts only to move unsold inventory, not as a permanent baseline.
Price elasticity of demand measures how much the quantity demanded changes in response to a price change. An elastic product sees a significant drop in demand when the price rises — most commodities and undifferentiated goods behave this way. An inelastic product holds its demand even as price climbs — insulin, cigarettes, and many luxury brands are examples. Businesses with inelastic demand can raise prices without sacrificing volume, which directly expands margin. Businesses with highly elastic demand must find ways to reduce cost instead. Knowing your elasticity is essential before using the target-margin formula to set prices — you need to verify the higher price won't destroy enough volume to make you worse off overall.
Contribution margin and break-even analysis
Contribution margin is the selling price minus variable costs per unit — every cost that scales with each additional sale (materials, packaging, payment processing fees, shipping). It represents the amount each sale 'contributes' to covering your fixed costs (rent, salaries, software subscriptions) before generating profit. A unit that sells for $80 with $30 of variable cost has a $50 contribution margin and a contribution margin ratio of 62.5% ($50 ÷ $80). Unlike gross margin, contribution margin keeps fixed and variable costs separate, which is what makes it a planning tool rather than just a reporting metric.
The break-even point in units is Fixed Costs ÷ Contribution Margin per Unit. If your fixed costs are $10,000 per month and every sale contributes $50, you need to sell 200 units to break even. In revenue terms, break-even = Fixed Costs ÷ Contribution Margin Ratio. The critical relationship here is that a higher gross margin (and therefore contribution margin ratio) means a lower break-even volume — you need fewer sales before you start making money. A business with a 70% contribution margin ratio breaks even at a far smaller revenue figure than one running at 20%, even if fixed costs are identical.
Contribution margin also drives product mix decisions. When manufacturing capacity or sales bandwidth is constrained, you should prioritize the product with the highest contribution margin per unit of the constraining resource (not simply the highest margin percentage). A product with a 60% contribution margin that takes two hours to produce may be less profitable to prioritize than one with a 45% contribution margin that takes 30 minutes — the latter generates three times as many contribution dollars per hour of capacity. This is a common insight from management accounting that applies equally to service businesses choosing which client engagements to pursue.
Markup vs. margin — why confusing them causes real pricing errors
The terms markup and margin describe the same dollar profit from two different angles. Markup is profit divided by cost; margin is profit divided by revenue. Because cost is always smaller than revenue, markup is always the larger percentage. A product that costs $60 and sells for $100 has a $40 profit — that is a 66.7% markup ($40 ÷ $60) but only a 40% margin ($40 ÷ $100). This gap widens as profitability increases: a 100% markup equals a 50% margin; a 300% markup equals a 75% margin. The two numbers only converge near zero, and they diverge dramatically at high markups.
The conversion formulas are: Margin = Markup ÷ (1 + Markup) and Markup = Margin ÷ (1 − Margin). A common real-world error: a retailer knows they need a 40% margin to cover overheads and profit, but mistakenly applies a 40% markup on cost. A $50 cost marked up 40% gives a $70 price, which looks right — until you calculate the actual margin: $20 ÷ $70 = 28.6%, well below the 40% target. The correct price for a 40% margin is $50 ÷ 0.60 = $83.33. The pricing error costs roughly $13.33 per unit — invisible until margin analysis exposes it.
Wholesale and retail buyers traditionally think in markup because their job is to buy at cost and apply a standard multiplier. Financial analysts and CFOs think in margin because financial statements express everything as a percentage of revenue. When buyers and finance teams use the same word — 'margin' — to mean different things, it creates systematic errors in reporting, forecasting, and vendor negotiations. Establishing a shared vocabulary, and using a calculator that displays both markup and margin simultaneously, eliminates the ambiguity before it becomes a budget problem.
Private, instant, and free
Nothing to install and no account to create. Every calculation — margin, markup, profit, target price, and contribution margin — runs locally in your browser. Your costs and prices never leave your device. Copy a one-line summary for a quote, or share a link that re-creates your exact numbers. Bookmark the margin calculator for the next time you need to price something quickly and accurately.
Frequently asked questions
How do you calculate profit margin?
Profit margin is your profit expressed as a percentage of the selling price: margin % = (revenue − cost) ÷ revenue × 100. For an item that costs $40 and sells for $100, the profit is $60 and the margin is 60 ÷ 100 × 100 = 60%. The calculator above does this the moment you enter a cost and a price — no submit button, results appear as you type. Calculator.net's margin page requires you to hit Calculate each time and shows only one calculation direction at a time; this tool solves in all four directions simultaneously.
What is the profit margin formula?
The gross profit margin formula is Margin % = (Selling price − Cost) ÷ Selling price × 100. The dollar profit is simply Selling price − Cost. Rearranged, the selling price for a target margin is Cost ÷ (1 − margin), and the cost behind a known margin is Selling price × (1 − margin). All three forms are built into this tool — enter any two values and it solves the rest. Omnicalculator's margin tool covers the same formulas but forces you to scroll past a long article to reach the calculator itself; this one puts the calculator first.
How do I calculate a 20% profit margin?
To price for a 20% margin, divide your cost by (1 − 0.20), i.e. cost ÷ 0.8. A product that costs $40 needs to sell for 40 ÷ 0.8 = $50, giving $10 profit (a 20% margin, which is the same as a 25% markup on cost). Use the 'Selling price for a target margin' panel and enter 20 to get the price for any cost. The formula is the same whether you're using it for retail, freelance services, ecommerce, or Amazon FBA — the math doesn't change regardless of platform.
What is a 30% profit margin?
A 30% profit margin means 30 cents of every sales dollar is profit and 70 cents covers the cost. To hit it, price at Cost ÷ 0.70. A $40 cost becomes 40 ÷ 0.70 = $57.14, leaving $17.14 profit. A 30% margin is equivalent to a 42.86% markup on cost. For context, 30% gross margin is common in physical retail, while software companies typically run 60–80% gross margins because the marginal cost per unit is near zero. Amazon FBA sellers often target 25–35% margins after accounting for fees.
What's the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. They describe the same dollar profit from two angles. A $40 item sold for $100 has a $60 profit, which is a 60% margin (60 ÷ 100) but a 150% markup (60 ÷ 40). Markup is always the larger number. Confusing the two is one of the most common small-business pricing errors — a supplier quoting '50% markup' and a buyer expecting '50% margin' will never agree on a price. This calculator converts between them instantly.
How do I convert markup to margin?
Use the formula Margin = Markup ÷ (1 + Markup). A 50% markup converts to 50 ÷ 150 = 33.33% margin; a 100% markup is a 50% margin; a 25% markup is a 20% margin. To go the other way, Markup = Margin ÷ (1 − Margin). The Markup ⇄ margin converter in this tool does both directions and includes a quick reference table. Rapidtables.com has a static markup-to-margin table, but it doesn't accept your specific numbers — this tool works for any value you enter.
What is gross profit margin?
Gross profit margin is the percentage of revenue left after subtracting the cost of goods sold (COGS) — the direct cost of making or buying what you sell — before operating expenses, interest, and tax. Gross margin = (Revenue − COGS) ÷ Revenue × 100. If you sell $100 of product that cost $40 to produce, your gross profit is $60 and your gross margin is 60%. This is the margin most relevant for product pricing; net margin includes all business costs and is usually much lower — a common source of confusion for new business owners.
What is a good profit margin?
It depends on the industry. As a rough guide, a 10% net profit margin is average, 20% is healthy, and 5% is thin. Gross margins run far higher — often 50–80% for software and many retail goods, around 25–35% for restaurants, and under 5% for grocery stores. For Amazon FBA sellers, most profitable products run 25–40% gross margins after factoring in fees. The most useful comparison is against similar businesses, not a universal number. Use this calculator to model different price points and see exactly how each moves your margin before you commit.
How do I calculate profit margin per unit?
Work it out on a single unit: Per-unit margin % = (Price per unit − Cost per unit) ÷ Price per unit × 100. If one unit sells for $25 and costs $15, the per-unit profit is $10 and the margin is 10 ÷ 25 = 40%. The margin percentage is identical whether you calculate it per unit or across a whole batch, so a single unit is the simplest way to check it. Enter both numbers in the main calculator and it shows margin, markup, and dollar profit together — all three update as you type.
How do I find the selling price for a target margin?
Divide the cost by one minus your target margin: Selling price = Cost ÷ (1 − margin). For a $40 cost and a 50% target margin, that's 40 ÷ 0.5 = $80, which yields $40 profit (a 100% markup on cost). Enter your cost and target percentage in the 'Selling price for a target margin' panel and it returns the exact price instantly. This is the right formula when you know your cost and need a price — not the other way around. Useful for setting retail prices, freelance rates, or Shopify product pricing.
How do I calculate margin from cost and selling price?
Subtract the cost from the selling price to get the profit, then divide by the selling price: Margin % = (Selling price − Cost) ÷ Selling price × 100. With a $40 cost and a $100 price, that's (100 − 40) ÷ 100 = 60%. Enter both numbers in the main calculator and it shows margin, markup, and dollar profit together — all three update as you type without needing to click Calculate. You can also reverse the process: enter a selling price and a target margin to find the maximum allowable cost.
What's the difference between net and gross profit margin?
Gross profit margin counts only the cost of goods sold, measuring how profitable each sale is before overhead. Net profit margin subtracts everything — COGS plus operating expenses, salaries, rent, interest, and tax — showing what the business actually keeps. A shop might have a 60% gross margin but a 10% net margin once all the bills are paid. This calculator focuses on gross margin (cost vs. selling price), which is the number that matters most when setting product prices and evaluating whether a deal makes sense.
What is contribution margin?
Contribution margin is the selling price minus the variable cost per unit — the amount each sale 'contributes' toward covering fixed costs and then profit. If a unit sells for $100 with $60 of variable cost, the unit contribution margin is $40 and the contribution margin ratio is 40%. This is especially useful for break-even analysis: divide fixed costs by contribution margin to find how many units you need to sell before you cover your overheads. Use the contribution margin panel above to compute it per unit and in total.
Is this margin calculator free and private?
Yes. It's completely free with no sign-up, and every calculation runs locally in your browser using JavaScript — your costs, prices, and margins are never uploaded to a server or shared with any third party. There are no ads interrupting your calculation and no email required to see your results. This differs from tools like Omnicalculator (ad-supported with tracking) and some business calculators that collect business data for sales outreach. Your numbers stay on your device, regardless of how sensitive the pricing data is.
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