Margin Calculator

Optimize Profitability with Accurate Margin Calculation

Stop guessing your profitability. This Margin Calculator is a precision tool designed for retailers, wholesalers, and dropshippers who need accurate financial data instantly. Whether you are setting competitive pricing or analyzing cost structures, accurate margin data is the backbone of a solvent business.

Unlike basic markup calculators, this tool distinguishes the critical difference between gross margin (revenue retention) and markup (cost uplift), ensuring you never underprice your inventory. Input your cost and revenue data above to generate actionable financial metrics immediately.

How to Use This Tool

1. Input Cost: Enter the full Cost of Goods Sold (COGS), including manufacturing and shipping.
2. Set Selling Price: Enter your target retail price or current listing price.
3. Analyze: Click "Calculate" to instantly reveal your Net Profit, Margin Percentage, and Markup Percentage.

Frequently Asked Questions

How do I calculate margin?

Use the formula: ((Selling Price - Cost) / Selling Price) × 100. This percentage reveals how much revenue you retain after covering costs. For example, if you sell a product for $100 that costs $70, your margin is 30%.

What is a 30% margin on $100?

A 30% margin on a $100 sale means you keep $30 in profit while your costs equal $70. To achieve this, your cost must not exceed 70% of the final sale price.

What is the difference between margin and markup?

Margin is profit as a percentage of the selling price, whereas Markup is profit as a percentage of the cost. Margin is always lower than markup. A 50% margin requires a 100% markup.

Is 30% profit margin good?

Yes. While averages vary by industry (Retail ~5%, Consulting ~20%, SaaS ~80%), a 30% net margin generally indicates high operational efficiency and strong market positioning.

How to get profit margin?

Subtract your Cost of Goods Sold (COGS) from Total Revenue to get Gross Profit. Divide that Profit figure by Total Revenue, then multiply by 100 to determine your specific profit margin percentage.