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Product Margin Calculator

Calculate product profit, margin and markup from cost and selling price.

Product Margin
Profit Margin
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Gross Profit —
Net Selling Price —
Total Cost —
Profit Margin —
Markup —
Margin = Profit ÷ Net Selling Price × 100

What Is a Product Margin Calculator?

A Product Margin Calculator calculates the profit earned from selling a product and expresses the profit as a percentage of the net selling price. It can account for product cost, discounts and additional costs.

How Is Product Profit Margin Calculated?

Product profit is calculated by subtracting the total product cost from the net selling price.

Profit = Net Selling Price − Total Cost

Profit margin is then calculated as:

Profit Margin = Profit ÷ Net Selling Price × 100

Profit Margin vs Markup

Profit margin and markup are different measures. Profit margin expresses profit as a percentage of the selling price, while markup expresses profit as a percentage of the product cost.

Markup = Profit ÷ Total Cost × 100

How Does Discount Affect Product Margin?

A discount reduces the amount received from the sale. The calculator deducts the discount from the selling price before calculating profit and profit margin.

Product Margin Calculator FAQs

What is a good product profit margin?

There is no single profit margin that is appropriate for every product or business. The required margin depends on costs, pricing, competition, operating expenses and the business model.

What is the difference between margin and markup?

Margin measures profit as a percentage of the net selling price. Markup measures profit as a percentage of the total product cost.

Does a discount reduce profit margin?

Yes. If the product cost remains unchanged, a lower net selling price generally reduces the profit and profit margin.

Does the calculator include additional costs?

Yes. An additional cost per unit can be entered and is added to the product cost before profit and margin are calculated.