Profit Margin Calculator
Quick answer: Margin = (price − cost) ÷ price. A $40 cost sold at $100 gives $60 profit, a 60% margin and a 150% markup.
Formulas
Profit = price − cost. Margin = profit ÷ price × 100. Markup = profit ÷ cost × 100.
Example
A product costing $40 and selling for $100 earns $60 profit, a 60% margin and a 150% markup.
Margin vs markup
Margin is based on price and markup on cost. A 50% markup is only a 33.3% margin, which is a common pricing mistake.
Frequently asked questions
What is a good profit margin?
It varies, but many ecommerce sellers aim for 30% or more after fees and shipping.
What is the difference between margin and markup?
Margin is profit as a percentage of price. Markup is profit as a percentage of cost.
How do I turn markup into margin?
Margin = markup ÷ (1 + markup). A 50% markup equals a 33.3% margin.
Related calculators
Estimates only, based on US seller rates. Fee rates change, so verify them on the official pricing page. Rates last verified October 5, 2026 against each platform's published fees and independent fee guides. How we verify rates.