Cost $40, Sell $35
Profit margin for cost $40 and selling price $35: -14.3%. Free profit margin calculator.
Profit = $35 - $40 = $-5.00. Margin = (-5.00 / 35) x 100 = -14.3%.
How This Was Calculated
Gross Profit:Gross Profit = Revenue - Cost of Goods Sold
Gross Margin:Gross Margin% = (Gross Profit / Revenue) x 100
Net Profit:Net Profit = Revenue - COGS - Expenses - Taxes
Net Margin:Net Margin% = (Net Profit / Revenue) x 100
Markup:Markup% = (Profit / Cost) x 100
Selling Price from Markup:Selling Price = Cost x (1 + Markup%)
Quick Reference Table
| Input | Result |
|---|---|
| 40 / 30 | -33.3% |
| 40 / 33 | -21.2% |
| 40 / 34 | -17.6% |
| 40 / 36 | -11.1% |
| 40 / 37 | -8.1% |
| 40 / 40 | 0.0% |
Frequently Asked Questions
What is a good profit margin?
It varies by industry. Retail typically sees 20-40% gross margins. Restaurants average 3-5% net margins. Software companies can have 70%+ gross margins. Compare your margins to industry benchmarks.
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. A 50% markup equals a 33.3% margin. Margin is always lower than markup for the same profit amount.
How do I price my product for a 40% margin?
Use the Markup Calculator tab. Enter your cost and set the markup percentage. For a 40% margin, you need a 66.7% markup. Selling Price = Cost / (1 - 0.40) = Cost / 0.60.