Calcvers
Profit Margin Calculator
Pricing & Profit
Generated
September 24, 2026
Profit margin
40%
$40.00 profit per unit
Your inputs
- Currency
- USD ($)
- Selling price
- 100
- Cost per unit
- 60
Breakdown
- Profit
- $40.00
- Markup
- 66.7%
- Cost ratio
- 60%
Where the selling price goes
| Item | Value |
|---|---|
| Selling price | $100.00 |
| Cost | $60.00 |
| Profit | $40.00 |
What this means
Profit margin is the share of each dollar of revenue that stays with you after covering the cost of what you sell. It's calculated as (selling price − cost) ÷ selling price. Markup is different: it's the same profit expressed as a percentage of cost, not of price. A 40% margin on a $100 sale means $40 profit; a 40% markup on a $60 cost means a $24 profit on an $84 price.
Recommendations
- Track margin, not markup — margin aligns with your bottom line and how buyers compare prices.
- Compare your margin against industry benchmarks to see if your pricing is in a healthy range.
- Re-price regularly: if supplier costs rise, the same markup gives a smaller margin.
Watch out
- Margin can never exceed 100%, and it drops quickly when costs rise — small cost increases erase most of a thin margin.