Calculate profit, profit margin and markup from cost and price.
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How do you calculate profit margin and markup?
Profit = Price − Cost. Margin% = Profit ÷ Price × 100, while Markup% = Profit ÷ Cost × 100. Margin expresses profit as a share of the selling price; markup expresses it as a share of cost, so they differ for the same sale. A 40 cost sold for 100 yields 60 profit, a 60% margin and a 150% markup.
Understanding your result
Margin is profit as a share of the selling price; markup is profit as a share of cost. They are different numbers for the same sale.
Formula and method
Profit = Price − Cost. Margin% = Profit ÷ Price × 100. Markup% = Profit ÷ Cost × 100.
Assumptions and limitations
Figures are estimates for general guidance only and not financial or business advice. They consider only the single cost and price you enter, ignoring overheads, taxes, shipping, returns and payment fees that affect true profitability. Your actual margins depend on your full cost base and circumstances, so treat this as a starting point for pricing.
Worked example
A 40 cost sold for 100 yields 60 profit, a 60% margin and a 150% markup.
How to use this tool
- Enter the cost.
- Enter the selling price.
- Press Calculate.
Common mistakes to avoid
- Confusing margin with markup — they are not the same.
About the Profit Margin Calculator
Find your profit, profit margin and markup from a product’s cost and selling price.
Who should use this tool
Retailers, e-commerce sellers, freelancers and small business owners who want to see profit, profit margin and markup from a product's cost and selling price. Useful for pricing decisions, checking whether a sale is worthwhile, and understanding the difference between margin and markup on the same transaction.
Benefits
- Calculates profit, margin and markup together at once
- Clarifies the difference between margin and markup
- Speeds up pricing and profitability checks
- Works privately in your browser with no account
Practical use cases
- Checking the margin on a product before pricing
- Comparing profitability across several items
- Translating a markup into its resulting margin
- Reviewing whether a discounted sale still profits
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Frequently asked questions
Margin vs markup?
Margin divides profit by the selling price; markup divides profit by the cost. Markup is always the larger percentage.
Why are margin and markup different for the same sale?
Both start from the same profit but measure it against a different base. Margin is profit divided by the selling price, while markup is profit divided by the cost. Because the price is larger than the cost, the margin percentage is always smaller, as with the 60% margin and 150% markup example.
Does a higher margin always mean more money earned?
Not necessarily. Margin is a percentage, so a high margin on a low-priced item can earn less cash than a smaller margin on an expensive one. To judge total earnings, look at the actual profit figure and how many units you expect to sell, not the percentage alone.