Free tool
Profit margin calculator
Type what you paid and what you charge. You get profit per item, margin and markup in one go. Any currency, no sign-up.
Enter a cost price and a selling price to see your margin.
The formula
Profit = Selling price − Cost price
Margin % = Profit ÷ Selling price × 100
Markup % = Profit ÷ Cost price × 100
Worked example: a 5 kg bag of rice
- Cost price 260, selling price 310.
- Profit = 310 − 260 = 50 per bag.
- Margin = 50 ÷ 310 = 16.1%.
- Markup = 50 ÷ 260 = 19.2%.
Margin or markup: which one to watch?
Margin is profit as a share of what the customer pays. Markup is profit as a share of what you paid. Same profit, different percentage, so the two are easy to mix up.
Watch margin when you ask "how much of my sales do I keep?". Use markup when you set a price from your cost.
A margin is not your real profit
This is profit before shop costs. Rent, electricity, wages and spoilage come out of it, so a 16% margin can still be a loss day if expenses are high.
Add up your expenses for the day and take them off the total profit to see what you really keep. BusinessX does that sum for you after every sale.
Questions people ask
How do I calculate profit margin on one item?
Subtract the cost price from the selling price to get the profit, then divide that profit by the selling price and multiply by 100. Cost 260 and price 310 gives a profit of 50 and a margin of 16.1%.
What is the difference between margin and markup?
Margin divides profit by the selling price. Markup divides profit by the cost price. The same item can have a 20% margin and a 25% markup, because 20% of the price equals 25% of the cost.
What is a good profit margin for a small shop?
It depends on what you sell. Fast-moving daily goods usually carry thin margins and make money on volume, while slower items such as accessories or clothing carry higher margins. Compare your own items against each other and against your monthly expenses.
Can the calculator show a loss?
Yes. If the selling price is below the cost price, the profit and margin turn negative and are shown in red.
Let the app do the sums.
BusinessX records every sale and shows your real profit, offline, on the phone you already have. Free to download, no sign-up.