Profit Margin Calculator
Find your profit, margin percentage, and markup percentage from a cost and selling price.
Margin vs markup — they're not the same
Margin is profit as a percentage of the selling price: Margin = (Revenue − Cost) ÷ Revenue × 100.
Markup is profit as a percentage of the cost: Markup = (Revenue − Cost) ÷ Cost × 100. The two numbers are always different (except at 0% profit) — confusing them is a common pricing mistake.
Worked example
An item costing 60 sold for 100 makes a profit of 40. That's a margin of 40 ÷ 100 = 40%, but a markup of 40 ÷ 60 ≈ 66.67% — the same 40 profit expressed two different ways.
Frequently asked questions
Which one should I use when pricing a product?
Markup is usually more useful when deciding what price to charge starting from a known cost. Margin is usually more useful when analysing profitability as a share of sales revenue, which is why both are shown here.
Does this include taxes or other expenses?
No — this is a simple cost-vs-revenue comparison. It doesn't account for taxes, shipping, platform fees, or overhead unless you fold those into your 'cost' figure yourself.