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
USDExample inputs. Replace them with your own.
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?
Does this calculate gross or net profit margin?
What happens when cost is zero?
Keep working on your pricing
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