Profit Margin Calculator
Instantly convert between margin, markup, and profit. Enter cost and selling price to see all three.
Track margins across every client
LedgerPro gives bookkeepers and CPA firms a clear view of profitability per engagement — no spreadsheet juggling.
Try LedgerPro free →How this calculator works
Enter your cost and selling price. The calculator shows the dollar profit, margin (profit divided by price), and markup (profit divided by cost).
Confusing margin and markup is one of the most expensive pricing errors in professional services. A 50% markup on a $100 cost gives a $150 price — but the margin is only 33.3%, not 50%. Always confirm which metric your firm targets.
Use this to price services, evaluate engagements, or sanity-check client proposals.
Frequently asked questions
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.
What is a good profit margin?
It varies by industry. Service businesses (accounting, consulting) typically target 20-40% net margins. Product businesses often run 5-15%.
How do I set a price from a target margin?
Divide your cost by (1 minus target margin). For a 30% margin on a $70 cost: $70 / 0.70 = $100 selling price.