This tool is for informational use only. It is not financial advice – Auburn AI is not a registered financial advisor. Numbers here are estimates; consult a licensed Canadian financial advisor before any major money decision.
Profit Margin Calculator
Profit, margin, and markup from cost and price.
How to use
Runs entirely in your browser. Live updates or click to run. No signup, no tracking, no data sent anywhere.
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Part of 71 free tools by Auburn AI. Category: Calculators
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About this tool
The Profit Margin Calculator takes your cost and revenue figures and instantly breaks down gross profit, profit margin percentage, and markup percentage. It is built for small business owners, freelancers, product sellers, and anyone who needs to quickly verify whether a price actually makes financial sense before committing to it.
Reach for this tool when you are setting prices for a new product, reviewing whether a client project is worth taking on, or checking if a supplier quote leaves enough room to run a healthy business. It is faster than a spreadsheet and does not require you to remember the difference between margin and markup.
How to use it
- Enter your total cost to produce or acquire the product or service.
- Enter your selling price or expected revenue in the revenue field.
- Click Calculate to see gross profit, margin percentage, and markup percentage instantly.
- Adjust either field to run what-if scenarios until the numbers look right.
- Use the margin result to compare against your industry benchmark or target.
- Copy or note the figures before moving on to your pricing document or invoice.
Pro tips
- Margin and markup use the same numbers but divide by different bases, so a 50 percent markup is only a 33 percent margin, not 50.
- Work backwards by entering your desired margin percentage first, then adjust the cost field to find your maximum allowable spend.