Free profit margin calculator

See how much of your selling price remains after the costs you enter. Check an existing quote, compare jobs, and understand the difference between margin and markup.

Free to use. No signup needed. Email your breakdown if you want a copy.

Your numbers

USD

Example inputs. Replace them with your own.

The amount you charge, excluding sales tax.

Labor, materials, travel, and the overhead you want to include.

Profit margin

25%

Selling price
$200.00
Total cost
$150.00
Profit after entered costs
$50.00
Equivalent markup
33.33%

A negative margin means the selling price does not cover your entered costs.

How to calculate it

Profit margin = (selling price − total cost) ÷ selling price × 100

A worked example

A $200 job that costs $150 leaves $50. The profit margin is 25%, because $50 is one quarter of the selling price. The equivalent markup on the $150 cost is 33.33%.

Choose which costs you include

Using only direct costs produces a gross margin. Add allocated overhead and other business costs if you want a closer estimate of net margin. The calculator cannot account for a cost you leave out.

Read a negative margin

When costs exceed the selling price, the result is negative. For example, a $200 price and $220 cost produce a $20 loss and a −10% margin. Review the scope, job time, and pricing before repeating that work.

Turn a margin target into a price

If you know your desired margin and need a selling price, use the service price calculator. Dividing cost by one minus the target margin gives the correct price. Multiplying cost by one plus the target produces a markup instead.

Profit margin questions

What is the profit margin formula?
Subtract total cost from selling price, divide the difference by selling price, and multiply by 100. Selling price must be above zero.
Does this calculate gross or net profit margin?
That depends on the costs you enter. Direct labor and materials give a gross-style margin. Including overhead and all other relevant expenses gives a fuller estimate. Personal taxes are not calculated.
What happens when cost is zero?
A positive selling price with zero entered cost gives a 100% margin. Markup is undefined because it divides by cost. Check that you have included your time and supplies.

Turn your price into a booking

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