Profit margin calculator
Enter cost and selling price to get profit, margin and markup.
Profit margin calculator
Find your profit margin and markup from a cost and a selling price. Margin tells you what share of the sale price is profit; markup tells you how much you added on top of cost. They are not the same number.
Formulas
Profit = price − cost. Margin % = profit ÷ price × 100. Markup % = profit ÷ cost × 100. Example: cost £40, price £100 → profit £60, margin 60%, markup 150%.
Margin vs markup
A 50% markup is only a 33% margin. Pricing on markup is common in retail; reporting on margin is common in accounting. Confusing the two is a frequent pricing mistake.
Frequently asked questions
How do I calculate profit margin? Subtract cost from price, divide by the price, and multiply by 100.
Is markup the same as margin? No — markup is measured against cost, margin against the selling price, so markup is always the larger percentage.