Profit Margin Calculator

Determine business profitability with per-unit and bulk scenarios.

Profit per Unit

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Profit Margin0.00%
Markup0.00%

Breakdown Summary

Total Revenue

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Total Cost

0.00

How to Use This Calculator

  • 1
    Choose a mode: "Simple" for single units, "Quantity" for bulk sales, or "Packet" to break down a bulk purchase.
  • 2
    Enter the Cost Price (what you paid) for the item or bulk packet.
  • 3
    Enter the Selling Price (what you charge your customer) per unit or per item.
  • 4
    If using 'Quantity' or 'Packet' mode, fill in the number of items sold or items per pack.
  • 5
    View your gross margin, markup percentage, and total profit in real-time.

Formula Used

Profit Margin % = ((Selling Price - Cost Price) / Selling Price) * 100. Markup % = ((Selling Price - Cost Price) / Cost Price) * 100. Margin is based on sales revenue, while markup is based on the cost.

Frequently Asked Questions

What is the difference between Margin and Markup?

Margin is the percentage of the selling price that is profit. Markup is the percentage added to the cost price to reach the selling price. Both describe profit but from different perspectives.

What is a good profit margin for a small business?

A "good" margin depends on the industry. Retail usually sees 20-30%, while service-based businesses or high-end luxury goods can often exceed 50% gross margin.

How can I increase my profit margin?

You can increase margins by either lowering your cost of goods sold (COGS) through bulk buying or by raising your selling prices through better branding and service value.

This Profit Margin Calculator is essential for retailers, e-commerce sellers, and wholesalers to track their unit economics. Use it to ensure your pricing strategy is sustainable and profitable. Results are estimates intended for general business planning reference.

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