Key Features
- Calculate profit margin from cost and selling price
- Calculate selling price from cost and desired margin
- Calculate cost from selling price and margin
- Automatic markup percentage calculation
- Clear breakdown showing all financial metrics
- Mobile-friendly interface for business calculations on the go
Common Use Cases
- Determine profit margins for products and services
- Set selling prices based on desired profit margins
- Calculate cost requirements to achieve target margins
- Analyze pricing strategies for retail and wholesale
- Plan pricing for e-commerce and online businesses
- Evaluate profitability of business proposals and contracts
How to Use
- Select the calculation type: Calculate Margin, Calculate Selling Price, or Calculate Cost
- Enter the required values based on your selected calculation type
- For "Calculate Margin": Enter cost and selling price
- For "Calculate Selling Price": Enter cost and desired profit margin percentage
- For "Calculate Cost": Enter selling price and desired profit margin percentage
- Click "Calculate" to see all financial metrics including profit margin, markup, and profit amount
Frequently Asked Questions
Profit margin is the percentage of profit relative to the selling price, while markup is the percentage of profit relative to the cost. For example, if a product costs $50 and sells for $100, the profit margin is 50% (profit of $50 divided by selling price of $100), while the markup is 100% (profit of $50 divided by cost of $50).
To calculate selling price from cost and profit margin, use the formula: Selling Price = Cost / (1 - Margin/100). For example, if your cost is $50 and you want a 40% profit margin, the selling price would be $50 / (1 - 0.40) = $83.33.
Profit margins vary significantly by industry. Retail businesses typically have margins of 20-30%, while service businesses may have margins of 50-70% or higher. Technology and software companies often have very high margins (70-90%), while grocery stores operate on thin margins (1-3%). Research your specific industry to determine appropriate margins.
Yes! While the calculator displays the dollar sign ($), you can use it with any currency. Simply enter amounts in your local currency, and the calculations will work the same way. The currency symbol is only for display purposes.
If your selling price is less than your cost, you will have a negative profit margin, meaning you are selling at a loss. This is generally not sustainable for a business. The calculator will show an error if you try to calculate margin with a selling price less than cost.
The calculator performs precise mathematical calculations with up to 2 decimal places for currency amounts and percentages. All calculations are performed server-side to ensure accuracy and reliability.
Yes! The calculator automatically calculates markup percentage for all calculation types. Markup shows the profit as a percentage of the cost, which is useful for understanding how much you are marking up your products from their cost basis.
The calculator accepts profit margins from 0% to 99.99%. A 100% margin would mean the selling price is infinite, which is not practical. In reality, profit margins typically range from 10% to 90% depending on the industry and business model.
