Business

Profit Margin Calculator

Enter unit cost, selling price, and quantity to see profit per unit, margin percent, markup percent, and total profit. Margin and markup answer different questions — this page shows both so they stop getting mixed up.

Last updated: September 30, 2026

Your result · Profit margin

40%

Share of revenue kept as profit.

Profit per unit: $40.00
Markup: 66.7%
Total profit: $400.00

Free · No signup · Math stays in your browser

What your result means

Profit margin is the headline: the share of each sale you keep. Markup answers the sibling question — how much you added over cost.

Same dollars, different denominators: $40 on $100 is 40% margin but 66.7% markup. Quote the wrong one and negotiations go sideways.

How the calculation works

Subtract unit cost from selling price for profit per unit.
Divide profit by price for margin percent; divide by cost for markup percent.
Multiply profit by quantity for the total.

Formula

profit = price − cost; margin = profit ÷ price; markup = profit ÷ cost

Profit per unitselling price − unit cost
Marginprofit ÷ selling price × 100
Markupprofit ÷ unit cost × 100
Totalprofit × quantity

Worked examples

Example: $60 cost, $100 price, 10 units
unitCost: 60unitPrice: 100quantity: 10
Result: Profit per unit $40.00 · Profit margin 40 · Markup 66.7 · Total profit $400.00
Example: break-even check at cost price
unitCost: 50unitPrice: 50quantity: 5
Result: Profit per unit $0.00 · Profit margin 0 · Markup 0 · Total profit $0.00

Assumptions

What this calculation takes for granted — check these before relying on the result.

Assumptions:

Default values are an example $60 cost at $100 price — replace with your figures.
Cost is fully loaded per unit; overhead allocation choices change it.
Single product, single price — mixes and discounts need their own math.

Limitations

Why your real figure may differ:

Margin on paper is not cash in hand — taxes, fees, returns, and late payments take their cut.
A healthy margin on tiny volume still pays nothing; pair this with a sales forecast.
Competitor responses to your pricing are not modelled.

Frequently asked questions

What is the difference between margin and markup?

Margin divides profit by selling price (share of revenue you keep); markup divides by cost (how much you added). A 40% margin on $100 equals a 66.7% markup on $60 — same $40, different base.

What is a good profit margin?

It depends entirely on the business: groceries thrive on single digits with volume, software on 70%+. Compare against your own industry, not a universal number.

Can margin exceed 100%?

No — margin tops out just under 100% (you cannot keep more than the price). Markup has no ceiling, which is exactly why the two get confused.

How do discounts affect margin?

Brutally: 10% off a $100 item at 40% margin removes $10 of the $40 profit — a quarter of it. Recompute margin at the discounted price before approving sales.

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