Profit Margin & Markup Calculator
Calculate profit margin from cost and sale price.
System verdict
RESULTProfit margin %: 40%
Margin is profit as a share of the sale PRICE. It caps at 100% and is the figure that matters for how much of each sale you keep.
Diagnostic telemetry
- Profit margin %
- 40%
- Profit
- 40
What this cannot tell you
- Pure arithmetic on the values you enter.
How this calculation works
Margin is the profit expressed as a share of the sale price. Enter what an item costs you and what you sell it for.
What the results mean
- Margin vs markup
- Margin is profit ÷ price (caps at 100%); markup is profit ÷ cost (can exceed 100%). They are different numbers for the same sale.
Frequently asked questions
What is the difference between margin and markup?
Margin measures profit against the selling price; markup measures it against the cost. A product costing 60 and selling for 100 has a 40% margin (40÷100) but a 67% markup (40÷60). Confusing the two is a common and expensive pricing mistake.