Profit Margin Calculator
See profit, margin, and markup from a cost and a selling price. Margin and markup use different denominators.
$
$
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
When to use it
- Pricing a product
- Checking that a quoted “margin” is not actually markup
Examples
Cost $40, sell at $50
Profit is $10, margin is 20%, and markup is 25%.
Cost $40, several selling prices
| Price | Profit | Margin | Markup |
|---|---|---|---|
| $50 | $10 | 20% | 25% |
| $60 | $20 | 33.3% | 50% |
| $80 | $40 | 50% | 100% |
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.