ViBytes Tools
Menu

Finance

Profit margin calculator

Calculate profit, margin, markup and a target selling price.

Enter your values, review the period and select Calculate. Calculations run in your browser; your financial data is neither sent nor saved. The page downloads software resources.

Educational estimates assume constant rates and exclude taxes, fees, inflation and insurance. They are not an offer or financial advice. Loans use a nominal annual rate divided by twelve; this is not the total cost of credit. The savings calculator converts an effective annual rate to the chosen frequency. Contributions occur every compounding period.

Amounts from 0 to 1,000,000,000, up to two decimal places. Rates from 0 to 100%, up to six decimal places. Use a decimal point or comma without thousands separators. Use the same currency for all amounts.

Calculation inputs

Ready to calculate

What this tool does

Distinguish profit, margin on sales and markup on cost, and calculate a price for a valid target margin.

Variables and assumptions

Profit equals sale price minus cost. Margin divides profit by sales; markup divides profit by cost. A target-margin price is cost divided by one minus the target margin expressed as a fraction.

How to interpret the result

Cost 80 and sale price 100 yield profit 20: margin 20% and markup 25%. A 20% markup does not produce a 20% margin. Check which expenses are included in cost before choosing a target price; a positive difference is not necessarily net profit.

Educational estimate; not personalized financial advice or a commercial offer.

How to use it

  1. Enter cost and selling price.
  2. Set a target margin below 100%.
  3. Calculate and compare margin with markup: their denominators differ.

Verifiable example

Input
Cost 80; selling price 100.
Expected result
Profit 20; margin 20%; markup 25%.

Limitations to review

  • Taxes and expenses not included in your cost are not added automatically. This is not net margin.
  • At zero cost, markup and certain target prices are undefined; the interface shows that instead of infinity.

Read the full tutorial

Related tools

Browse all guides. Local processing: the page downloads HTTP resources but does not send files or input data to a server for these functions.