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Profit Margin Calculator

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

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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.

Worked example

A 40 cost sold for 100 yields 60 profit, a 60% margin and a 150% markup.

How to use this tool

  1. Enter the cost.
  2. Enter the selling price.
  3. 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.

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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.