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Profit Margin Calculator

Estimate profit, margin, markup, revenue, and pricing requirements from cost, selling price, quantity, discount, and fixed costs in one practical business pricing dashboard.

Editor

Profit margin assumptions

Enter cost, selling price or target pricing goals, quantity, and optional adjustments in one calm layout. The profit, margin, markup, and pricing insights update instantly as you compare scenarios.

Inputs

The calculator keeps the core pricing inputs visible up front, makes the target mode clear, and leaves optional adjustments in the same card so the workflow stays simple for beginners.

Pricing mode

Choose whether you want to analyze an existing price, solve for a target margin, or solve for a target markup.

Pricing inputs

Start with the unit cost and quantity, then either enter your current selling price or choose the margin or markup target you want to hit.

Margin shows profit as a share of selling price, while markup shows profit as a share of cost. Both update from the same unit economics.

Optional adjustments

Use discount and fixed costs for a more realistic pricing picture without mixing them into the core unit margin and markup definitions.

Discount changes the realized selling price before margin is calculated. Fixed costs reduce adjusted total profit, but they do not change the per-unit margin or markup percentages.

Results

Estimated pricing results

Use the results dashboard to compare unit economics, total profit, and the pricing level required to support your target margin or markup.

Profit margin

37.5%

Margin is profit as a percentage of selling price. At $40.00 per unit after discount, each sale keeps +$15.00 before fixed costs.

Profit per unit

$15.00

Unit profit after discount and before fixed costs.

Total profit

$1,500.00

Gross profit across the entered quantity, before fixed costs.

Markup

60%

Profit as a percentage of cost per unit.

Revenue

$4,000.00

Realized selling price after discount multiplied by quantity.

Total cost

$2,500.00

Cost per unit multiplied by quantity.

Adjusted profit after fixed costs

$1,500.00

Matches total profit because fixed costs are set to $0.

Revenue, cost, and profit comparison

This view compares revenue, total cost, and gross profit so you can quickly see the size of the profit spread.

Revenue

$4,000.00

Total cost

$2,500.00

Gross profit

$1,500.00

Pricing breakdown

Review the exact unit economics, totals, and target-pricing figures that feed the margin and markup results.
MetricValue
Cost per unit$25.00
Selling price per unit$40.00
Effective selling price per unit$40.00
Discount rate0%
Discount per unit$0.00
Profit per unit+$15.00
Quantity100
Total revenue$4,000.00
Total cost$2,500.00
Gross profit+$1,500.00
Profit margin+37.5%
Markup+60%
Fixed costs$0.00
Adjusted total profit+$1,500.00

How it works

How this profit margin calculator helps with pricing

This calculator is designed for practical business pricing decisions. It shows how cost, selling price, quantity, discount, and fixed costs affect gross profit, profit margin, markup, and adjusted total profit.

What a profit margin calculator does

A profit margin calculator helps you understand whether a price leaves enough room between cost and selling price. It turns basic pricing inputs into practical outputs like profit per unit, total profit, margin, markup, and required selling price.

How profit is calculated

Profit per unit is the realized selling price minus cost per unit. Total profit scales that same unit result across the quantity you enter. If you add fixed costs, the calculator also shows an adjusted total profit so you can see how overhead changes the bigger picture.

What profit margin means

Profit margin is profit as a percentage of selling price. If a sale brings in $40 and keeps $15 of profit before fixed costs, the margin is 37.5%. Margin answers the question, “How much of each sales dollar do I keep as profit?”

What markup means

Markup is profit as a percentage of cost. If the cost is $25 and the profit is $15, the markup is 60%. Markup answers a different question: “How far above cost am I pricing this item?”

Margin vs markup

Margin and markup are related, but they are not the same. Margin uses selling price as the denominator. Markup uses cost as the denominator. That is why a 40% margin does not mean a 40% markup, and why this calculator displays both side by side.

Quantity, discount, and fixed costs

Quantity scales the total revenue and total profit. Discount reduces the realized selling price before margin is calculated. Fixed costs reduce adjusted total profit without changing the unit margin or markup math. Results are estimates based only on the values you enter.