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Profit Margin Calculator

Turn cost and selling price into profit, margin, and markup. The two percentages are often confused — this page shows both side by side and explains exactly what each one means for your pricing.

How to use

  1. Enter what the product or service costs you.
  2. Enter the price you charge your customer.
  3. Select a currency for display.
  4. Read your profit per sale, your profit margin, and your markup — explained below.
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Result

Enter your cost and selling price above to see the calculation.

Formula used

  • profit = selling price − cost
  • margin% = profit ÷ selling price × 100
  • markup% = profit ÷ cost × 100

Margin is measured against the selling price: of every unit of revenue, how much is profit? Markup is measured against cost: how much do you add on top of what you paid?

Example: cost 60, selling price 100 → profit 40 → margin 40.00% (40 of 100) but markup 66.67% (40 of 60). A 50% margin always equals a 100% markup; they are two views of the same profit.

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