Enter cost and selling price to get profit, margin and markup percentages instantly.
Numbers
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Profit
$0.00
Enter cost and selling price.
Margin
-
Markup
-
Profit
$0.00
Formulas: profit = price - cost. Margin = profit / price x 100 (share of the selling price). Markup = profit / cost x 100 (share added on top of cost).
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Margin vs markup
Margin is profit as a share of the selling price: how much of each dollar of revenue you keep. Markup is profit as a share of cost: how much you add on top of what you paid. A $60 cost sold for $100 is a 40% margin but a 66.7% markup.
Which one to quote
Retailers and investors usually talk margin (share of revenue). Suppliers setting prices usually think in markup (multiple of cost). Use the number your audience expects so nobody misreads the deal.
Margin is profit divided by selling price; markup is profit divided by cost. The same sale has a lower margin number than markup number because the selling price is bigger than the cost.
How do you calculate profit margin?
Subtract cost from selling price to get profit, then divide profit by selling price and multiply by 100. A $60 cost sold at $100 gives ($40 / $100) x 100 = 40% margin.
How do you calculate markup?
Subtract cost from selling price, divide by cost, and multiply by 100. A $60 cost sold at $100 gives ($40 / $60) x 100 = 66.7% markup.
What is a good profit margin?
It depends on the industry: groceries run on single-digit margins while software can exceed 70%. Compare against businesses like yours, not against a universal rule.
Is my data uploaded anywhere?
No. Every calculation happens in your browser with JavaScript. Nothing you enter leaves your device.