Profit Margin Calculator
Calculate profit, margin, and markup from cost and revenue.
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About this calculator
Margin and markup are related but not the same. Margin is profit as a share of revenue. Markup is profit as a share of cost. Mixing them up is a common pricing error.
How to calculate
Enter cost and revenue (or selling price). The calculator returns profit, margin, and markup.
Profit = Revenue − Cost
Margin = Profit / Revenue × 100
Markup = Profit / Cost × 100
Examples
Cost $40, sell at $50
Profit is $10, margin is 20%, and markup is 25%.
FAQ
Why are margin and markup different?
They use different denominators. A 25% markup on $40 is $10, which is a 20% margin on a $50 sale.
Can revenue be lower than cost?
Yes. The calculator will show a loss and negative margin.