Profit Margin Calculator
Enter cost and selling price to see profit, margin per cent and markup per cent side by side.
- Profit
- —
- Markup
- —
What is the Profit Margin Calculator?
This calculator takes your cost and selling price and returns the profit, the profit margin and the markup. Margin is profit as a share of the selling price, while markup is profit as a share of cost, so the two numbers always differ.
How it works
Profit equals selling price minus cost. Margin per cent equals profit divided by selling price times 100. Markup per cent equals profit divided by cost times 100. For a cost of 80 and a price of 100, profit is 20, margin is 20 per cent and markup is 25 per cent.
How to use it
- Enter what the item costs you.
- Enter the price you sell it at.
- Read profit, margin and markup.
Profit Margin Calculator — FAQ
What is the difference between margin and markup?
Margin compares profit with the selling price; markup compares profit with the cost. A 25 per cent markup equals a 20 per cent margin.
Can the result be negative?
Yes. If the selling price is below cost, profit, margin and markup all turn negative, showing a loss.
Does cost include overheads?
Only if you include them in the cost you type. For a true picture, add packaging, shipping and a share of fixed costs to the cost figure.