Profit Margin Calculator
Enter what a unit costs you and what you sell it for. This shows your profit margin — the percentage of your selling price that's actual profit, not the same thing as markup.
Frequently asked questions
Q.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 your cost. The same $5 profit on a $15 sale is a 33% margin but a 50% markup — they're calculated on different bases, so don't use them interchangeably when pricing.
Q.What's a healthy profit margin for a small business?
It varies a lot by industry. Retail often runs 20-50%, services can run much higher since labor is the main cost, and razor-thin categories like grocery or wholesale distribution can be under 10%. Compare against others in your specific category rather than a general rule of thumb.
Q.Should I include shipping and fees in 'cost'?
For an accurate margin, yes — include everything that goes out the door for that unit: product cost, packaging, shipping, and payment processing fees. Leaving those out overstates your real margin.