Profit  = Revenue − Cost
Margin% = Profit ÷ Revenue × 100

Profit Margin Calculator

Price confidently with a fast, no-nonsense profit margin calculator. Enter any two values—cost, price (revenue), margin %, markup %, or profit—and instantly get the rest. Whether you’re quoting apparel, signage, or services, this tool helps you check profitability before you hit “send.”

How margin is calculated

• Profit = Price − Cost
• Margin % = Profit ÷ Price × 100
• Markup % = Profit ÷ Cost × 100

Margin answers “what percent of the selling price is profit?” while markup asks “what percent of the cost is profit?” They’re related, but not interchangeable. For example, a 25% margin equals a 33.33% markup.

Quick steps

1. Enter what you know (e.g., Cost and Price).
2. Click Calculate to see Profit, Margin %, and Markup %.
3. Adjust numbers to test scenarios—raise or lower price, change cost, or target a margin and let the tool solve the price for you.
4. Copy the results into your quote or spreadsheet.

Worked example

Your blank tee costs $6.80 and you want a 45% margin.

• Price = Cost ÷ (1 − Margin) = 6.80 ÷ 0.55 = $12.36
• Profit = 12.36 − 6.80 = $5.56
• Markup % = 5.56 ÷ 6.80 = 81.76%

Now you can compare that to market rates or add decoration charges on top.

When to use margin vs. markup

• Use margin for financial targets and reporting. It aligns with income statements and is easy to compare across products.
• Use markup when building a sell price from cost. Many teams think in markups (e.g., “add 60%”).Tip: Pick one framework for your team and convert when needed to avoid pricing mistakes.

Common pitfalls to avoid

• Confusing margin with markup: A 50% margin is not a 50% markup—your price will be too low.
• Ignoring fixed costs: If artwork, setup, or shipping are baked into cost, include them before calculating margin.
• Forgetting quantity breaks: Unit cost often drops at higher quantities; recheck your margin at each tier.
• Discounts without checks: A 10% discount rarely equals a 10% margin hit. Re-run the numbers before approving.

Practical pricing tips

• Start with a target margin range (e.g., 40–55%) and let the calculator solve the price.
• Add rounding rules customers expect (e.g., $12.95 instead of $12.36) and confirm the new margin still works.
• Save your common inputs (base garment cost, decoration add-ons) to speed up quoting.

Use this profit margin calculator whenever you price a new item, apply a discount, or negotiate a quote. It’s a quick guardrail that protects your margin—and your sanity.