Profit Margin and Markup Calculator
Enter your cost price and selling price to see your profit, profit margin (percentage of selling price) and markup (percentage of cost).
Profit Margin and Markup Calculator
Calculates profit, profit margin and markup percentage from a product's cost and selling price.
This calculator computes profit as selling price minus cost, then expresses that same profit two different ways: as margin (a percentage of the selling price) and as markup (a percentage of the cost price). Because these two percentages are easy to mix up but mean quite different things for pricing strategy, seeing them side by side for the same transaction helps avoid pricing mistakes when setting margins versus markups.
Example
- With the default values shown above, this calculator returns: Profit per Unit ≈ $25; Profit Margin ≈ 38.46%; Markup ≈ 62.5%.
Frequently Asked Questions
What's the difference between margin and markup?
Margin expresses profit as a percentage of the selling price, while markup expresses the same profit dollar amount as a percentage of the cost price — the two will always be different numbers for the same sale.
Why does a 100% markup not equal a 100% margin?
Because they use different denominators — a $40 cost sold at $80 is a 100% markup (profit ÷ cost) but only a 50% margin (profit ÷ selling price), which is a common source of pricing confusion.
Sources
- Standard formula, publicly documented method