Profit Margin Calculator
Work out profit, profit margin and markup from your cost and selling price.
- Profit
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- Markup
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Margin vs markup
Profit is simply your selling price minus your cost. Margin and markup then express that profit as a percentage — but against different bases, which is why they are easy to confuse.
The formulas
Profit = Selling price − Cost. Profit margin = Profit ÷ Selling price × 100
(profit as a share of revenue). Markup = Profit ÷ Cost × 100 (profit as a share of cost).
Markup is always the larger number for the same sale.
How to use the Profit Margin Calculator
- Enter the cost. Type what the product or service costs you to make or buy.
- Enter the selling price. Type the price you charge the customer.
- Read your result. See profit, profit margin and markup update instantly.
Frequently asked questions
What is the difference between margin and markup?
Margin measures profit against the selling price, while markup measures the same profit against the cost. Markup is always a higher percentage than margin for the same sale.
Can the margin be more than 100%?
No. Because margin is profit divided by selling price, it can approach but never reach 100%. Markup, however, can exceed 100%.
Is this gross or net margin?
It is gross margin — it compares selling price with direct cost only. It does not include overheads, taxes or operating expenses.
Does this calculator store my figures?
No. The calculation runs entirely in your browser; nothing you enter is sent to or stored on a server.