Profit Margin Calculator
Running a business or selling products online? Knowing your profit margin is the difference between thriving and barely surviving. Our Profit Margin Calculator is here to save the day—no spreadsheets, no headaches, just quick and accurate results. Whether you're pricing handmade crafts or figuring out your e-commerce profits, this tool simplifies the math so you can focus on what really matters: growing your business. Let’s make profit tracking as easy as pie (and maybe even more satisfying)!
Enter the cost price and selling price to calculate the profit margin.
How Does It Work?
The Profit Margin Calculator uses a simple formula to determine how much profit you're making on each sale. Here’s the breakdown:
Profit Margin = ((Selling Price - Cost Price) / Selling Price) × 100
For example, if you sell a product for $50 and it costs you $30 to make, your profit margin is 40%. That means 40% of your selling price is pure profit. Easy, right?
| Cost Price ($) | Selling Price ($) | Profit Margin (%) |
|---|---|---|
| 10 | 20 | 50.00 |
| 15 | 30 | 50.00 |
| 20 | 40 | 50.00 |
| 25 | 50 | 50.00 |
| 30 | 60 | 50.00 |
| 35 | 70 | 50.00 |
| 40 | 80 | 50.00 |
| 45 | 90 | 50.00 |
| 50 | 100 | 50.00 |
| 55 | 110 | 50.00 |
10 Common Use Cases for the Profit Margin Calculator
- 1. Pricing handmade goods for craft fairs or online shops.
- 2. Determining profit margins for e-commerce products.
- 3. Analyzing restaurant menu item profitability.
- 4. Calculating margins for wholesale and retail businesses.
- 5. Setting prices for freelance services or consulting.
- 6. Evaluating profitability of dropshipping products.
- 7. Comparing profit margins across different product lines.
- 8. Planning discounts or sales without losing profitability.
- 9. Budgeting for manufacturing or production costs.
- 10. Teaching business students about financial metrics.