Business & pricing
Profit Margin Calculator
Check the real margin on any product or order in seconds.
Cost & price → margin
Profit per unit
$2.00
Margin
33%
Markup
50%
Total profit
$2.00
Cost & target margin → price
$6.67
How to use the Profit Margin Calculator
Enter what a product or order costs you and what you charge for it to see your profit, margin, and markup instantly. Margin is profit as a share of your selling price; markup is profit as a share of your cost — the two numbers are never equal above 0%, which is one of the most common pricing mix-ups. Use the second calculator to work backwards from a target margin to a price.
What is a good profit margin for baked goods?
Many small bakeries target a 30-40% margin after ingredient, labor, and overhead costs, but the right number depends on your market and how much of your own labor you're pricing in. Use the Cake Pricing Calculator if you want labor and overhead built into the math directly.
What is the difference between margin and markup?
Margin is profit divided by selling price. Markup is profit divided by cost. A $2 profit on a $6 item is a 33% margin but a 50% markup — the same dollars, two different percentages, so always check which one you're being quoted.
How do I price a product to hit a specific margin?
Use the second calculator on this page: enter your cost per unit and your target margin percentage, and it solves for the selling price that hits exactly that margin, using price = cost ÷ (1 − margin).