FinanceToolHub

Profit Margin Calculator

Easily calculate your profit margin, markup percentage, and profit amount using this free Profit Margin Calculator.

How It Works

Profit margin = (Selling Price - Cost Price) / Selling Price × 100
It helps determine how much profit a business earns per sale.

Example

If the cost price is $50 and the selling price is $75, then the profit margin is 33.3%.

FAQs

Q: What is a good profit margin?
A: Typically, 10–20% is good for most businesses, but it varies by industry.

Q: How can I increase profit margin?
A: Reduce costs, increase efficiency, or adjust pricing strategically.