Profit Margin Calculator

Knowing how to calculate profit margin helps you price your products profitably. Use this simple formula:

Profit Margin % = [(Selling Price - Cost Price) / Selling Price] × 100

Your profit margin shows how much you're making on each product after covering costs.

Example:
You sell t-shirts online:

Cost per t-shirt: $10 (manufacturing + shipping)
Selling price: $25

Profit Margin = [($25 - $10) / $25] × 100 = 60%

You make $15 profit per t-shirt with a 60% margin.