Profit Margin Calculator - Margin %, Markup % & Multi-Product Batch Analysis
You spent $35 on fuel and supplies and billed the job at $60—that is $25 profit, a 41.7% margin and 71.4% markup. Enter cost and price below, or reverse-calculate the price you need for a target margin.
Calculate Profit & Margin
Enter cost and selling price to calculate margin and markup
Profit
$25.00
41.67% margin · 71.43% markup
Batch Analysis
Add multiple products to analyze margins across your portfolio
Methodology and limitations
Last reviewed:
Methodology
Calculates profit margin (profit / revenue) and markup (profit / cost) from cost and selling price. Reverse-calculates selling price from target margin or maximum cost from price and margin. Supports batch analysis of multiple products with portfolio totals.
Limitations
Planning estimate. Does not include volume discounts, variable costs, overhead allocation, taxes, shipping, returns, or markdown strategies. Compare to industry benchmarks and actual sales data.
Official sources
How Profit Margin and Markup Are Calculated
You spent $35 on fuel and supplies and billed the job at $60—that is $25 profit, a 41.7% margin and 71.4% markup. Enter cost and price below, or reverse-calculate the price you need for a target margin.
Method used
Margin is profit divided by selling price; markup is profit divided by cost. The calculator solves either direction and supports a multi-product batch table with portfolio totals and CSV export.
Profit = price − cost; margin % = profit / price; markup % = profit / cost; price = cost / (1 − margin)
Practical example
You bill a job at $60 after $35 in fuel and supplies—that's $25 profit and a 41.7% margin. Enter cost and price below, or use batch mode to total a weekend mix of jobs.
- Cost: $35
- Selling price: $60
- Single-product margin mode
$25 profit, 41.7% margin, 71.4% markup
What this includes
- Margin, markup, and profit dollars
- Reverse solve for price or cost
- Batch product table and CSV export
What this excludes
- Taxes, shipping, volume discounts, and inventory carrying costs
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Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit as a percentage of revenue: (Selling Price − Cost) / Selling Price. Markup is profit as a percentage of cost: (Selling Price − Cost) / Cost. A 50% markup equals 33.3% margin. Retailers often use markup for pricing decisions; investors and analysts prefer margin for profitability analysis. This calculator shows both.
How do I calculate selling price from desired margin?
Use the formula: Selling Price = Cost / (1 − Margin%). For 40% margin on $35 in mowing costs, divide $35 by 0.6 to get $58.33. The Find Price tab automates this. Price every job so fuel, wear, and your time are covered—not just the direct cost.
How do I find maximum cost from a target margin?
Use: Cost = Selling Price × (1 − Margin%). If you sell at $150 and want 40% margin, multiply $150 by 0.6 to get maximum cost of $90. The Find Cost tab does this automatically. This is useful for negotiating supplier pricing to hit margin targets.
What is a good profit margin?
Good margins vary by industry. Software and SaaS often run 70-90% gross margin; retail and restaurants may see 20-40%; commodity resellers see single digits. Compare your margin to industry benchmarks. Use this calculator to model pricing scenarios and see how margin changes affect profitability at different volumes.
Can I analyze multiple products at once?
Yes. The Batch Analysis section lets you add multiple products with name, cost, and price. The calculator displays margin and markup for each line and computes overall portfolio margin and profit. Export the full table to CSV for reporting, inventory reviews, or pricing audits.
Why does 50% margin not equal 50% markup?
Margin divides profit by revenue; markup divides profit by cost. They use different denominators. A $100 item sold for $150 has $50 profit. Margin = 50 / 150 = 33.3%. Markup = 50 / 100 = 50%. Always clarify which metric you are using when discussing pricing with teams or partners.